This module allows you to analyze existing cross correlation between Chevron Corporation and SM Energy Company. You can compare the effects of market volatilities on Chevron and SM Energy 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 SM Energy. See also your portfolio center
. Please also check ongoing floating volatility patterns of Chevron
and SM Energy
Chevron Corp. vs SM Energy Company
Considering 30-days investment horizon, Chevron is expected to generate 9.26 times less return on investment than SM Energy. But when comparing it to its historical volatility, Chevron Corporation is 5.15 times less risky than SM Energy. It trades about 0.11 of its potential returns per unit of risk. SM Energy Company is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,587 in SM Energy Company on September 19, 2017 and sell it today you would earn a total of 237 from holding SM Energy Company or generate 14.93% return on investment over 30 days.
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Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. and SM Energy Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SM Energy 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 SM Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SM Energy has no effect on the direction of Chevron i.e. Chevron and SM Energy go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corporation are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in SM Energy Company are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.