Correlation Between Chevron Corp and LILLY
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chevron Corp and LILLY ELI 55, you can compare the effects of market volatilities on Chevron Corp and LILLY 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 LILLY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and LILLY.
Diversification Opportunities for Chevron Corp and LILLY
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chevron and LILLY is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and LILLY ELI 55 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LILLY ELI 55 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 LILLY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LILLY ELI 55 has no effect on the direction of Chevron Corp i.e., Chevron Corp and LILLY go up and down completely randomly.
Pair Corralation between Chevron Corp and LILLY
Considering the 90-day investment horizon Chevron Corp is expected to generate 2.1 times more return on investment than LILLY. However, Chevron Corp is 2.1 times more volatile than LILLY ELI 55. It trades about 0.18 of its potential returns per unit of risk. LILLY ELI 55 is currently generating about -0.09 per unit of risk. If you would invest 13,780 in Chevron Corp on September 12, 2024 and sell it today you would earn a total of 1,841 from holding Chevron Corp or generate 13.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 79.69% |
Values | Daily Returns |
Chevron Corp vs. LILLY ELI 55
Performance |
Timeline |
Chevron Corp |
LILLY ELI 55 |
Chevron Corp and LILLY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chevron Corp and LILLY
The main advantage of trading using opposite Chevron Corp and LILLY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, LILLY 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 LILLY will offset losses from the drop in LILLY's long position.Chevron Corp vs. Victory Integrity Smallmid Cap | Chevron Corp vs. Hilton Worldwide Holdings | Chevron Corp vs. NVIDIA | Chevron Corp vs. JPMorgan Chase Co |
LILLY vs. AEP TEX INC | LILLY vs. US BANK NATIONAL | LILLY vs. Applied Blockchain | LILLY vs. BigBearai Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |