Pair Correlation Between Apple and Chevron

This module allows you to analyze existing cross correlation between Apple Inc and Chevron Corporation. You can compare the effects of market volatilities on Apple and Chevron 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 Apple with a short position of Chevron. See also your portfolio center. Please also check ongoing floating volatility patterns of Apple and Chevron.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Apple Inc  vs   Chevron Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple Inc is expected to generate 1.15 times more return on investment than Chevron. However, Apple is 1.15 times more volatile than Chevron Corporation. It trades about 0.31 of its potential returns per unit of risk. Chevron Corporation is currently generating about -0.14 per unit of risk. If you would invest  15,617  in Apple Inc on October 21, 2017 and sell it today you would earn a total of  1,361  from holding Apple Inc or generate 8.71% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Apple and Chevron
-0.47

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Apple Inc

  
20 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.

Chevron

  
0 

Risk-Adjusted Performance

Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.