Correlation Analysis Between Chevron and Cenovus Energy

Analyzing 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
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Comparative Performance


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.
Cenovus Energy  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Cenovus Energy are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. In spite of rather unsteady fundamental drivers, Cenovus Energy may actually be approaching a critical reversion point that can send shares even higher in February 2020.

Chevron and Cenovus Energy Volatility Contrast

 Predicted Return Density 

Chevron Corp.  vs.  Cenovus Energy Inc

 Performance (%) 

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 1.98 times less risky than Cenovus Energy. The stock trades about -0.01 of its potential returns per unit of risk. The Cenovus Energy is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  874.00  in Cenovus Energy on December 19, 2019 and sell it today you would earn a total of  52.00  from holding Cenovus Energy or generate 5.95% return on investment over 30 days.

Pair Corralation between Chevron and Cenovus Energy

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Chevron and Cenovus Energy

Chevron Corp. diversification synergy

Very weak 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 Chance of Distress module to get analysis of equity chance of financial distress in the next 2 years.