Correlation Between Aegean Marine and Chevron Corp
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 Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Aegean Marine Petroleum vs. Chevron Corp
Performance |
Timeline |
Aegean Marine Petroleum |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Chevron Corp |
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.Aegean Marine vs. Avient Corp | Aegean Marine vs. Merit Medical Systems | Aegean Marine vs. NL Industries | Aegean Marine vs. Sensient Technologies |
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Check out your portfolio center.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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