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 Corporation is expected to under-perform the Apple. But the stock apears to be less risky and, when comparing its historical volatility, Chevron Corporation is 1.26 times less risky than Apple. The stock trades about -0.12 of its potential returns per unit of risk. The Apple Inc is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  15,976  in Apple Inc on October 18, 2017 and sell it today you would earn a total of  1,039  from holding Apple Inc or generate 6.5% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Chevron and Apple
-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 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

  
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.

Apple Inc

  
13 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.