This module allows you to analyze existing cross correlation between Chevron Corporation and International Business Machines. 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|
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.
Over the last 30 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, International Business is not utilizing all of its potentials. The late stock price chaos, may contribute to medium term losses for the stakeholders.
Chevron and International Business Volatility Contrast
Predicted Return Density
Chevron Corp. vs. International Business Machine
Considering 30-days investment horizon, Chevron Corporation is expected to under-perform the International Business. But the stock apears to be less risky and, when comparing its historical volatility, Chevron Corporation is 1.28 times less risky than International Business. The stock trades about -0.11 of its potential returns per unit of risk. The International Business Machines is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 13,885 in International Business Machines on July 20, 2019 and sell it today you would lose (381.00) from holding International Business Machines or give up 2.74% of portfolio value over 30 days.
Pair Corralation between Chevron and International Business
|Time Period||2 Months [change]|
Diversification Opportunities for Chevron and International Business
Very weak 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.
See also 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.