Correlation Analysis Between Chevron and Eni SPA

This module allows you to analyze existing cross correlation between Chevron Corporation and ENI SpA. You can compare the effects of market volatilities on Chevron and Eni SPA 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 Eni SPA. See also your portfolio center. Please also check ongoing floating volatility patterns of Chevron and Eni SPA.
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.
ENI SpA  
00

Risk-Adjusted Performance

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

Chevron and Eni SPA Volatility Contrast

 Predicted Return Density 
      Returns 

Chevron Corp.  vs.  ENI SpA

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Chevron Corporation is expected to generate 1.11 times more return on investment than Eni SPA. However, Chevron is 1.11 times more volatile than ENI SpA. It trades about 0.01 of its potential returns per unit of risk. ENI SpA is currently generating about -0.06 per unit of risk. If you would invest  12,364  in Chevron Corporation on August 21, 2019 and sell it today you would earn a total of  68.00  from holding Chevron Corporation or generate 0.55% return on investment over 30 days.

Pair Corralation between Chevron and Eni SPA

0.85
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Chevron and Eni SPA

Chevron Corp. diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. and ENI SpA in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ENI SpA 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 Eni SPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENI SpA has no effect on the direction of Chevron i.e. Chevron and Eni SPA go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.


 
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