Pair Correlation Between Chevron and Apple

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

Pair Volatility

Considering 30-days investment horizon, Chevron is expected to generate 16.18 times less return on investment than Apple. But when comparing it to its historical volatility, Chevron Corporation is 1.16 times less risky than Apple. It trades about 0.02 of its potential returns per unit of risk. Apple Inc is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  14,362  in Apple Inc on April 24, 2017 and sell it today you would earn a total of  1,018  from holding Apple Inc or generate 7.09% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Chevron and Apple
0.18

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Average diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Chevron

  
1 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corporation are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.

Apple Inc

  
18 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.