Correlation Analysis Between Chevron and Cenovus Energy

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

Chevron  
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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 unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2019. The current disturbance may also be a sign of long term up-swing for the company investors.
Cenovus Energy  
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Risk-Adjusted Performance

Over the last 30 days Cenovus Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Chevron and Cenovus Energy Volatility Contrast

 Predicted Return Density 
      Returns 

Chevron Corp.  vs.  Cenovus Energy Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Chevron Corporation is expected to under-perform the Cenovus Energy. But the stock apears to be less risky and, when comparing its historical volatility, Chevron Corporation is 1.72 times less risky than Cenovus Energy. The stock trades about -0.17 of its potential returns per unit of risk. The Cenovus Energy is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  898.00  in Cenovus Energy on July 26, 2019 and sell it today you would lose (68.00)  from holding Cenovus Energy or give up 7.57% of portfolio value over 30 days.

Pair Corralation between Chevron and Cenovus Energy

0.87
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy97.73%
ValuesDaily Returns

Diversification Opportunities for Chevron and Cenovus Energy

Chevron Corp. diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. and Cenovus Energy Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Cenovus 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 Cenovus Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenovus Energy has no effect on the direction of Chevron i.e. Chevron and Cenovus Energy go up and down completely randomly.
See also your portfolio center. Please also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.


 
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