Correlation Between GW Pharmaceuticals and Chevron Corp
Can any of the company-specific risk be diversified away by investing in both GW Pharmaceuticals and Chevron Corp 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 GW Pharmaceuticals and Chevron Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GW Pharmaceuticals Plc and Chevron Corp, you can compare the effects of market volatilities on GW Pharmaceuticals and Chevron Corp 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 GW Pharmaceuticals with a short position of Chevron Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GW Pharmaceuticals and Chevron Corp.
Diversification Opportunities for GW Pharmaceuticals and Chevron Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GWPH and Chevron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GW Pharmaceuticals Plc and Chevron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chevron Corp and GW Pharmaceuticals 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 GW Pharmaceuticals Plc are associated (or correlated) with Chevron Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron Corp has no effect on the direction of GW Pharmaceuticals i.e., GW Pharmaceuticals and Chevron Corp go up and down completely randomly.
Pair Corralation between GW Pharmaceuticals and Chevron Corp
If you would invest 14,097 in Chevron Corp on February 10, 2024 and sell it today you would earn a total of 2,448 from holding Chevron Corp or generate 17.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
GW Pharmaceuticals Plc vs. Chevron Corp
Performance |
| Timeline |
| GW Pharmaceuticals Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Chevron Corp |
GW Pharmaceuticals and Chevron Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GW Pharmaceuticals and Chevron Corp
The main advantage of trading using opposite GW Pharmaceuticals and Chevron Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GW Pharmaceuticals position performs unexpectedly, Chevron Corp 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 Chevron Corp will offset losses from the drop in Chevron Corp's long position.| GW Pharmaceuticals vs. Cedar Realty Trust | GW Pharmaceuticals vs. Titan Machinery | GW Pharmaceuticals vs. Fomento Economico Mexicano | GW Pharmaceuticals vs. Ambev SA ADR |
| Chevron Corp vs. BP PLC ADR | Chevron Corp vs. Shell PLC ADR | Chevron Corp vs. Petroleo Brasileiro Petrobras | Chevron Corp vs. Suncor Energy |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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