Correlation Between Aegean Marine and Chevron Corp

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Can any of the company-specific risk be diversified away by investing in both Aegean Marine and Chevron Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aegean Marine and Chevron Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegean Marine Petroleum and Chevron Corp, you can compare the effects of market volatilities on Aegean Marine and Chevron Corp 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 Aegean Marine with a short position of Chevron Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Marine and Chevron Corp.

Diversification Opportunities for Aegean Marine and Chevron Corp

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Aegean and Chevron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Marine Petroleum and Chevron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chevron Corp and Aegean Marine 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 Aegean Marine Petroleum are associated (or correlated) with Chevron Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron Corp has no effect on the direction of Aegean Marine i.e., Aegean Marine and Chevron Corp go up and down completely randomly.

Pair Corralation between Aegean Marine and Chevron Corp

If you would invest (100.00) in Aegean Marine Petroleum on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Aegean Marine Petroleum or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Aegean Marine Petroleum  vs.  Chevron Corp

 Performance 
       Timeline  
Aegean Marine Petroleum 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Aegean Marine Petroleum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Aegean Marine is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Chevron Corp 

Risk-Adjusted Performance

6 of 100

 
Low
 
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Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Chevron Corp may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Aegean Marine and Chevron Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aegean Marine and Chevron Corp

The main advantage of trading using opposite Aegean Marine and Chevron Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Marine position performs unexpectedly, Chevron Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chevron Corp will offset losses from the drop in Chevron Corp's long position.
The idea behind Aegean Marine Petroleum and Chevron Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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