Chevron Corp Stock Volatility

CVX Stock  USD 155.26  0.33  0.21%   
Chevron Corp secures Sharpe Ratio (or Efficiency) of -0.0017, which signifies that the company had a -0.0017% return per unit of standard deviation over the last 3 months. Chevron Corp exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Chevron Corp's risk adjusted performance of (0.02), and Mean Deviation of 0.8117 to double-check the risk estimate we provide. Key indicators related to Chevron Corp's volatility include:
60 Days Market Risk
Chance Of Distress
60 Days Economic Sensitivity
Chevron Corp Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Chevron daily returns, and it is calculated using variance and standard deviation. We also use Chevron's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Chevron Corp volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Chevron Corp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Chevron Corp's managers and investors.
Environmental
Governance
Social
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Chevron Corp can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Chevron Corp at lower prices. For example, an investor can purchase Chevron stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Chevron Corp's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Chevron Stock

  0.71E Eni SpA ADRPairCorr
  0.7BP BP PLC ADRPairCorr
  0.66SU Suncor EnergyPairCorr
  0.7CVE Cenovus EnergyPairCorr
  0.65IMO Imperial OilPairCorr

Moving against Chevron Stock

  0.49VIVK VivakorPairCorr
  0.33DO Diamond Offshore DrillingPairCorr

Chevron Corp Market Sensitivity And Downside Risk

Chevron Corp's beta coefficient measures the volatility of Chevron stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Chevron stock's returns against your selected market. In other words, Chevron Corp's beta of 0.0118 provides an investor with an approximation of how much risk Chevron Corp stock can potentially add to one of your existing portfolios. Chevron Corp exhibits very low volatility with skewness of -0.13 and kurtosis of 0.97. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Chevron Corp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Chevron Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Chevron Corp Demand Trend
Check current 90 days Chevron Corp correlation with market (Dow Jones Industrial)

Chevron Beta

    
  0.0118  
Chevron standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.08  
It is essential to understand the difference between upside risk (as represented by Chevron Corp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Chevron Corp's daily returns or price. Since the actual investment returns on holding a position in chevron stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Chevron Corp.

Using Chevron Put Option to Manage Risk

Put options written on Chevron Corp grant holders of the option the right to sell a specified amount of Chevron Corp at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Chevron Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Chevron Corp's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Chevron Corp will be realized, the loss incurred will be offset by the profits made with the option trade.

Chevron Corp's PUT expiring on 2024-07-19

   Profit   
       Chevron Corp Price At Expiration  

Current Chevron Corp Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-07-19 PUT at $190.0-0.84550.00852002024-07-1932.4 - 36.4534.38View
Put
2024-07-19 PUT at $175.0-0.82010.01432024-07-1917.6 - 21.119.13View
Put
2024-07-19 PUT at $170.0-0.78930.01812024-07-1912.4 - 16.214.25View
Put
2024-07-19 PUT at $167.5-0.76360.020622024-07-1910.0 - 13.8511.88View
Put
2024-07-19 PUT at $165.0-0.89250.02575262024-07-198.35 - 9.7510.17View
Put
2024-07-19 PUT at $162.5-0.85360.0365332024-07-196.5 - 8.057.35View
Put
2024-07-19 PUT at $160.0-0.89890.053242252024-07-194.4 - 4.75.59View
Put
2024-07-19 PUT at $157.5-0.72150.10722642024-07-192.24 - 2.572.42View
Put
2024-07-19 PUT at $155.0-0.42650.110248992024-07-191.09 - 1.171.18View
Put
2024-07-19 PUT at $152.5-0.21240.07239562024-07-190.39 - 0.490.49View
Put
2024-07-19 PUT at $150.0-0.09530.038361162024-07-190.16 - 0.20.2View
View All Chevron Corp Options

Chevron Corp Stock Volatility Analysis

Volatility refers to the frequency at which Chevron Corp stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Chevron Corp's price changes. Investors will then calculate the volatility of Chevron Corp's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Chevron Corp's volatility:

Historical Volatility

This type of stock volatility measures Chevron Corp's fluctuations based on previous trends. It's commonly used to predict Chevron Corp's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Chevron Corp's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Chevron Corp's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Chevron Corp Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Chevron Corp Projected Return Density Against Market

Considering the 90-day investment horizon Chevron Corp has a beta of 0.0118 suggesting as returns on the market go up, Chevron Corp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Chevron Corp will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Chevron Corp or Oil, Gas & Consumable Fuels sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Chevron Corp's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Chevron stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Chevron Corp has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial.
   Predicted Return Density   
       Returns  
Chevron Corp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how chevron stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Chevron Corp Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Chevron Corp Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Chevron Corp is -57593.72. The daily returns are distributed with a variance of 1.17 and standard deviation of 1.08. The mean deviation of Chevron Corp is currently at 0.79. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.61
α
Alpha over Dow Jones
-0.05
β
Beta against Dow Jones0.01
σ
Overall volatility
1.08
Ir
Information ratio -0.07

Chevron Corp Stock Return Volatility

Chevron Corp historical daily return volatility represents how much of Chevron Corp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.0824% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.5714% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Chevron Corp Volatility

Volatility is a rate at which the price of Chevron Corp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Chevron Corp may increase or decrease. In other words, similar to Chevron's beta indicator, it measures the risk of Chevron Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Chevron Corp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for Next Year
Market Cap144.7 B151.9 B
Chevron Corp's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Chevron Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Chevron Corp's price varies over time.

3 ways to utilize Chevron Corp's volatility to invest better

Higher Chevron Corp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Chevron Corp stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Chevron Corp stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Chevron Corp investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Chevron Corp's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Chevron Corp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Chevron Corp Investment Opportunity

Chevron Corp has a volatility of 1.08 and is 1.89 times more volatile than Dow Jones Industrial. 9 percent of all equities and portfolios are less risky than Chevron Corp. You can use Chevron Corp to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Chevron Corp to be traded at $153.71 in 90 days.

Significant diversification

The correlation between Chevron Corp and DJI is 0.01 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and DJI in the same portfolio, assuming nothing else is changed.

Chevron Corp Additional Risk Indicators

The analysis of Chevron Corp's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Chevron Corp's investment and either accepting that risk or mitigating it. Along with some common measures of Chevron Corp stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Chevron Corp Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Chevron Corp as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Chevron Corp's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Chevron Corp's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Chevron Corp.

Additional Tools for Chevron Stock Analysis

When running Chevron Corp's price analysis, check to measure Chevron Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Chevron Corp is operating at the current time. Most of Chevron Corp's value examination focuses on studying past and present price action to predict the probability of Chevron Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chevron Corp's price. Additionally, you may evaluate how the addition of Chevron Corp to your portfolios can decrease your overall portfolio volatility.