Correlation Analysis Between BP plc and Chevron

This module allows you to analyze existing cross correlation between BP plc and Chevron Corporation. You can compare the effects of market volatilities on BP plc and Chevron 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 BP plc with a short position of Chevron. See also your portfolio center. Please also check ongoing floating volatility patterns of BP plc and Chevron.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

BP plc  

Risk-Adjusted Performance

Over the last 30 days BP plc has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite very unfluctuating forward-looking indicators, BP plc is not utilizing all of its potentials. The ongoing stock price disarray, may contribute to short term momentum losses for the insiders.

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corporation are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. 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.

BP plc and Chevron Volatility Contrast

 Predicted Return Density 

BP plc  vs.  Chevron Corp.

 Performance (%) 

Pair Volatility

Allowing for the 30-days total investment horizon, BP plc is expected to under-perform the Chevron. But the stock apears to be less risky and, when comparing its historical volatility, BP plc is 1.04 times less risky than Chevron. The stock trades about -0.05 of its potential returns per unit of risk. The Chevron Corporation is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  12,016  in Chevron Corporation on August 16, 2019 and sell it today you would earn a total of  134.00  from holding Chevron Corporation or generate 1.12% return on investment over 30 days.

Pair Corralation between BP plc and Chevron

Time Period3 Months [change]
StrengthVery Strong
ValuesDaily Returns

Diversification Opportunities for BP plc and Chevron

BP plc diversification synergy

No risk reduction

Overlapping area represents the amount of risk that can be diversified away by holding BP plc and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron and BP plc 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 BP plc are associated (or correlated) with Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of BP plc i.e. BP plc and Chevron go up and down completely randomly.
See also your portfolio center. Please also try Instant Ratings module to determine any equity ratings based on digital recommendations. macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.