Correlation Between Chevron Corp and Dicks Sporting

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Chevron Corp and Dicks Sporting 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 Dicks Sporting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chevron Corp and Dicks Sporting Goods, you can compare the effects of market volatilities on Chevron Corp and Dicks Sporting 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 Dicks Sporting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and Dicks Sporting.

Diversification Opportunities for Chevron Corp and Dicks Sporting

0.13
  Correlation Coefficient

Average diversification

The 3 months correlation between Chevron and Dicks is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and Dicks Sporting Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicks Sporting Goods 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 Dicks Sporting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dicks Sporting Goods has no effect on the direction of Chevron Corp i.e., Chevron Corp and Dicks Sporting go up and down completely randomly.

Pair Corralation between Chevron Corp and Dicks Sporting

Considering the 90-day investment horizon Chevron Corp is expected to generate 0.54 times more return on investment than Dicks Sporting. However, Chevron Corp is 1.84 times less risky than Dicks Sporting. It trades about 0.26 of its potential returns per unit of risk. Dicks Sporting Goods is currently generating about 0.06 per unit of risk. If you would invest  15,057  in Chevron Corp on September 2, 2022 and sell it today you would earn a total of  3,192  from holding Chevron Corp or generate 21.2% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Chevron Corp  vs.  Dicks Sporting Goods

 Performance (%) 
       Timeline  
Chevron Corp 
Chevron Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Chevron Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Chevron Price Channel

Dicks Sporting Goods 
Dicks Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Dicks Sporting Goods are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking signals, Dicks Sporting may actually be approaching a critical reversion point that can send shares even higher in January 2023.

Dicks Price Channel

Chevron Corp and Dicks Sporting Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Chevron Corp and Dicks Sporting

The main advantage of trading using opposite Chevron Corp and Dicks Sporting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, Dicks Sporting 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 Dicks Sporting will offset losses from the drop in Dicks Sporting's long position.
Chevron Corp vs. General Electric
Chevron Corp vs. Home Depot
Chevron Corp vs. International Business Machines
Chevron Corp vs. Caterpillar
The idea behind Chevron Corp and Dicks Sporting Goods 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.
Dicks Sporting vs. Netflix
Dicks Sporting vs. Mastercard
Dicks Sporting vs. Caterpillar
Dicks Sporting vs. Goldman Sachs 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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

Other Complementary Tools

Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go