Correlation Analysis Between International Business and Chevron

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

International Business  
00

Risk-Adjusted Performance

Over the last 30 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, International Business is not utilizing all of its potentials. The ongoing stock price chaos, may contribute to medium term losses for the stakeholders.
Chevron  
00

Risk-Adjusted Performance

Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly strong basic indicators, Chevron is not utilizing all of its potentials. The ongoing stock price disturbance, may contribute to short term losses for the investors.

International Business and Chevron Volatility Contrast

 Predicted Return Density 
      Returns 

International Business Machine  vs.  Chevron Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, International Business Machines is expected to under-perform the Chevron. But the stock apears to be less risky and, when comparing its historical volatility, International Business Machines is 1.2 times less risky than Chevron. The stock trades about -0.09 of its potential returns per unit of risk. The Chevron Corporation is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  11,939  in Chevron Corporation on November 7, 2019 and sell it today you would lose (138.00)  from holding Chevron Corporation or give up 1.16% of portfolio value over 30 days.

Pair Corralation between International Business and Chevron

0.22
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for International Business and Chevron

International Business Machine diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron and International Business 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 International Business Machines are associated (or correlated) with Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of International Business i.e. International Business and Chevron go up and down completely randomly.
See also your portfolio center. Please also try Chance of Distress module to get analysis of equity chance of financial distress in the next 2 years.


 
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