Correlation Between Anton Oilfield and Chevron Corp
Can any of the company-specific risk be diversified away by investing in both Anton Oilfield 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 Anton Oilfield and Chevron Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anton Oilfield Services and Chevron Corp, you can compare the effects of market volatilities on Anton Oilfield 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 Anton Oilfield with a short position of Chevron Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anton Oilfield and Chevron Corp.
Diversification Opportunities for Anton Oilfield and Chevron Corp
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anton and Chevron is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Anton Oilfield Services and Chevron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chevron Corp and Anton Oilfield 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 Anton Oilfield Services 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 Anton Oilfield i.e., Anton Oilfield and Chevron Corp go up and down completely randomly.
Pair Corralation between Anton Oilfield and Chevron Corp
Assuming the 90 days horizon Anton Oilfield Services is expected to under-perform the Chevron Corp. In addition to that, Anton Oilfield is 1.55 times more volatile than Chevron Corp. It trades about -0.09 of its total potential returns per unit of risk. Chevron Corp is currently generating about 0.19 per unit of volatility. If you would invest 14,095 in Chevron Corp on January 21, 2024 and sell it today you would earn a total of 1,905 from holding Chevron Corp or generate 13.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anton Oilfield Services vs. Chevron Corp
Performance |
| Timeline |
| Anton Oilfield Services |
| Chevron Corp |
Anton Oilfield and Chevron Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anton Oilfield and Chevron Corp
The main advantage of trading using opposite Anton Oilfield and Chevron Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anton Oilfield 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.| Anton Oilfield vs. AAC Clyde Space | Anton Oilfield vs. Avante Logixx | Anton Oilfield vs. Corby Spirit and | Anton Oilfield vs. HUMANA INC |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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