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
Chevron Corp. vs International Business Machine
Considering 30-days investment horizon, Chevron is expected to generate 1.29 times less return on investment than International Business. But when comparing it to its historical volatility, Chevron Corporation is 1.48 times less risky than International Business. It trades about 0.28 of its potential returns per unit of risk. International Business Machines Corporation is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 15,250 in International Business Machines Corporation on December 22, 2017 and sell it today you would earn a total of 987 from holding International Business Machines Corporation or generate 6.47% return on investment over 30 days.
|Time Period||1 Month [change]|
Very poor 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.
Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corporation are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in International Business Machines Corporation are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.