Correlation Between Chevron Corp and Cabot Oil
Can any of the company-specific risk be diversified away by investing in both Chevron Corp and Cabot Oil at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Chevron Corp and Cabot Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chevron Corp and Cabot Oil Gas, you can compare the effects of market volatilities on Chevron Corp and Cabot Oil and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Chevron Corp with a short position of Cabot Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and Cabot Oil.
Diversification Opportunities for Chevron Corp and Cabot Oil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chevron and Cabot is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and Cabot Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabot Oil Gas and Chevron Corp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Chevron Corp are associated (or correlated) with Cabot Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabot Oil Gas has no effect on the direction of Chevron Corp i.e., Chevron Corp and Cabot Oil go up and down completely randomly.
Pair Corralation between Chevron Corp and Cabot Oil
If you would invest 15,527 in Chevron Corp on January 26, 2024 and sell it today you would earn a total of 830.00 from holding Chevron Corp or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Chevron Corp vs. Cabot Oil Gas
Performance |
| Timeline |
| Chevron Corp |
| Cabot Oil Gas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chevron Corp and Cabot Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and Cabot Oil
The main advantage of trading using opposite Chevron Corp and Cabot Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, Cabot Oil can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cabot Oil will offset losses from the drop in Cabot Oil's long position.| Chevron Corp vs. BP PLC ADR | Chevron Corp vs. Shell PLC ADR | Chevron Corp vs. Petroleo Brasileiro Petrobras | Chevron Corp vs. Suncor Energy |
| Cabot Oil vs. Topbuild Corp | Cabot Oil vs. Parker Hannifin | Cabot Oil vs. Newpark Resources | Cabot Oil vs. MYR Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |