Correlation Between Chevron Corp and China Ming
Can any of the company-specific risk be diversified away by investing in both Chevron Corp and China Ming 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 China Ming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chevron Corp and China Ming Yang, you can compare the effects of market volatilities on Chevron Corp and China Ming 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 China Ming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and China Ming.
Diversification Opportunities for Chevron Corp and China Ming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chevron and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and China Ming Yang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Ming Yang 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 China Ming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Ming Yang has no effect on the direction of Chevron Corp i.e., Chevron Corp and China Ming go up and down completely randomly.
Pair Corralation between Chevron Corp and China Ming
If you would invest 15,690 in Chevron Corp on January 18, 2024 and sell it today you would lose (50.00) from holding Chevron Corp or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Chevron Corp vs. China Ming Yang
Performance |
| Timeline |
| Chevron Corp |
| China Ming Yang |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chevron Corp and China Ming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and China Ming
The main advantage of trading using opposite Chevron Corp and China Ming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, China Ming 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 China Ming will offset losses from the drop in China Ming's long position.The idea behind Chevron Corp and China Ming Yang pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| China Ming vs. Aris Water Solutions | China Ming vs. Enlight Renewable Energy | China Ming vs. NRG Energy | China Ming vs. National Rural Utilities |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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