Correlation Analysis Between Chevron and Adams Resources

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

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.
Adams Resources Energy  
00

Risk-Adjusted Performance

Over the last 30 days Adams Resources Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Adams Resources is not utilizing all of its potentials. The ongoing stock price tumult, may contribute to shorter-term losses for the shareholders.

Chevron and Adams Resources Volatility Contrast

 Predicted Return Density 
      Returns 

Chevron Corp.  vs.  Adams Resources Energy

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Chevron Corporation is expected to generate 0.55 times more return on investment than Adams Resources. However, Chevron Corporation is 1.81 times less risky than Adams Resources. It trades about 0.01 of its potential returns per unit of risk. Adams Resources Energy is currently generating about -0.04 per unit of risk. If you would invest  12,366  in Chevron Corporation on August 20, 2019 and sell it today you would earn a total of  52.00  from holding Chevron Corporation or generate 0.42% return on investment over 30 days.

Pair Corralation between Chevron and Adams Resources

0.43
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Chevron and Adams Resources

Chevron Corp. diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. and Adams Resources Energy in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Adams Resources 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 Adams Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adams Resources Energy has no effect on the direction of Chevron i.e. Chevron and Adams Resources go up and down completely randomly.
See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.


 
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