Correlation Analysis Between Chevron and International Business

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

Comparative Performance

Chevron  
0

Risk-Adjusted Performance

Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
International Business  
0

Risk-Adjusted Performance

Over the last 30 days International Business Machines Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

Chevron and International Business Volatility Contrast

 Predicted Return Density 
      Returns 

Chevron Corp.  vs.  International Business Machine

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Chevron is expected to generate 1.43 times less return on investment than International Business. But when comparing it to its historical volatility, Chevron Corporation is 1.05 times less risky than International Business. It trades about 0.25 of its potential returns per unit of risk. International Business Machines Corporation is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  10,757  in International Business Machines Corporation on January 21, 2019 and sell it today you would earn a total of  3,050  from holding International Business Machines Corporation or generate 28.35% return on investment over 30 days.

Pair Corralation between Chevron and International Business

0.77
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Chevron and International Business

Chevron Corp. diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. and International Business Machine in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on International Business 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 International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Chevron i.e. Chevron and International Business go up and down completely randomly.

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  

Chevron Corporation

Pair trading matchups for Chevron

See also your portfolio center. Please also try Equity Search module to search for activelly-traded equities including funds and etfs from over 30 global markets.


 
Search macroaxis.com