Correlation Analysis Between Chevron and International Business

This module allows you to analyze existing cross correlation between Chevron Corporation and International Business Machines Corporation. You can compare the effects of market volatilities on Chevron and International Business 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 International Business. See also your portfolio center. Please also check ongoing floating volatility patterns of Chevron and International Business.
 Time Horizon     30 Days    Login   to change
Symbolsvs

Chevron Corp.  vs.  International Business Machine

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Chevron Corporation is expected to under-perform the International Business. But the stock apears to be less risky and, when comparing its historical volatility, Chevron Corporation is 1.03 times less risky than International Business. The stock trades about -0.09 of its potential returns per unit of risk. The International Business Machines Corporation is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  14,128  in International Business Machines Corporation on June 22, 2018 and sell it today you would earn a total of  507.00  from holding International Business Machines Corporation or generate 3.59% return on investment over 30 days.

Pair Corralation between Chevron and International Business

-0.37
Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
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 International Business Machine in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on International Business 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 International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Chevron i.e. Chevron and International Business 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.
International Business  
9 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in International Business Machines Corporation are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1186.96

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