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Correlation Between Chevron and Equinor ASA

Analyzing existing cross correlation between Chevron Corporation and Equinor ASA. You can compare the effects of market volatilities on Chevron and Equinor ASA 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 Equinor ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron and Equinor ASA.
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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 latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Equinor ASA  
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Risk-Adjusted Performance

Over the last 30 days Equinor ASA has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of latest unsteady performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long running gains for the enterprise management.

Chevron and Equinor ASA Volatility Contrast

 Predicted Return Density 
    
  Returns 

Chevron Corp.  vs.  Equinor ASA

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, Chevron Corporation is expected to generate 0.64 times more return on investment than Equinor ASA. However, Chevron Corporation is 1.56 times less risky than Equinor ASA. It trades about -0.11 of its potential returns per unit of risk. Equinor ASA is currently generating about -0.11 per unit of risk. If you would invest  11,877  in Chevron Corporation on January 20, 2020 and sell it today you would lose (853.00)  from holding Chevron Corporation or give up 7.18% of portfolio value over 30 days.

Pair Corralation between Chevron and Equinor ASA

0.61
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy96.83%
ValuesDaily Returns

Diversification Opportunities for Chevron and Equinor ASA

Chevron Corp. diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. and Equinor ASA in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Equinor ASA 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 Equinor ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinor ASA has no effect on the direction of Chevron i.e. Chevron and Equinor ASA go up and down completely randomly.
Check out your portfolio center. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.