Correlation Between Chevron Corp and Valic Company

Can any of the company-specific risk be diversified away by investing in both Chevron Corp and Valic Company 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 Valic Company into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chevron Corp and Valic Company I, you can compare the effects of market volatilities on Chevron Corp and Valic Company 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 Valic Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and Valic Company.

Diversification Opportunities for Chevron Corp and Valic Company

-0.32

Correlation Coefficient

Chevron Corp  Valic Company

Very good diversification

The 3 months correlation between Chevron and Valic is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and Valic Company I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valic Company I 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 Valic Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valic Company I has no effect on the direction of Chevron Corp i.e., Chevron Corp and Valic Company go up and down completely randomly.

Pair Corralation between Chevron Corp and Valic Company

Considering the 90-day investment horizon Chevron Corp is expected to under-perform the Valic Company. In addition to that, Chevron Corp is 1.1 times more volatile than Valic Company I. It trades about -0.07 of its total potential returns per unit of risk. Valic Company I is currently generating about 0.11 per unit of volatility. If you would invest  2,226  in Valic Company I on September 1, 2025 and sell it today you would earn a total of  157.00  from holding Valic Company I or generate 7.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Chevron Corp  vs.  Valic Company I

Chevron Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Chevron Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Chevron Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Valic Company I

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Valic Company I are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Valic Company may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Chevron Corp and Valic Company

The main advantage of trading using opposite Chevron Corp and Valic Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, Valic Company 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 Valic Company will offset losses from the drop in Valic Company's long position.

The idea behind Chevron Corp and Valic Company I 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.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.