This module allows you to analyze existing cross correlation between Apple Inc and Chevron Corporation. You can compare the effects of market volatilities on Apple 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 Apple with a short position of Chevron. See also your portfolio center
. Please also check ongoing floating volatility patterns of Apple
Apple Inc vs Chevron Corp.
Given the investment horizon of 30 days, Apple Inc is expected to generate 1.04 times more return on investment than Chevron. However, Apple is 1.04 times more volatile than Chevron Corporation. It trades about -0.06 of its potential returns per unit of risk. Chevron Corporation is currently generating about -0.43 per unit of risk. If you would invest 17,700 in Apple Inc on January 22, 2018 and sell it today you would lose (593.00) from holding Apple Inc or give up 3.35% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron and Apple 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 Apple Inc 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 Apple i.e. Apple and Chevron go up and down completely randomly.
Over the last 30 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.