Correlation Analysis Between BP Plc and Chevron

Analyzing existing cross correlation between BP plc and Chevron Corporation. You can compare the effects of market volatilities on BP Plc 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 BP Plc with a short position of Chevron. See also your portfolio center. Please also check ongoing floating volatility patterns of BP Plc and Chevron.
Horizon     30 Days    Login   to change
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Comparative Performance

BP plc  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in BP plc are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Inspite very unfluctuating forward-looking indicators, BP Plc is not utilizing all of its potentials. The ongoing stock price disarray, may contribute to short term momentum losses for the insiders.
Chevron  
00

Risk-Adjusted Performance

Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly strong basic indicators, Chevron is not utilizing all of its potentials. The ongoing stock price disturbance, may contribute to short term losses for the investors.

BP Plc and Chevron Volatility Contrast

 Predicted Return Density 
    
  Returns 

BP plc  vs.  Chevron Corp.

 Performance (%) 
    
  Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, BP plc is expected to generate 0.87 times more return on investment than Chevron. However, BP plc is 1.15 times less risky than Chevron. It trades about 0.03 of its potential returns per unit of risk. Chevron Corporation is currently generating about -0.01 per unit of risk. If you would invest  3,827  in BP plc on December 20, 2019 and sell it today you would earn a total of  50.00  from holding BP plc or generate 1.31% return on investment over 30 days.

Pair Corralation between BP Plc and Chevron

0.42
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for BP Plc and Chevron

BP plc diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding BP plc and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron and BP Plc 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 BP plc 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 BP Plc i.e. BP Plc and Chevron go up and down completely randomly.
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