BP PLC Correlations

BPE Stock

EUR 4.72 0.01 0.21%

The current 90-days correlation between BP PLC DZ1 and Penta Ocean Construction Co is 0.33 (i.e., Weak diversification). The correlation of BP PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

BP PLC Correlation With Market

Modest diversification

The correlation between BP PLC DZ1 and DJI is 0.2 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding BP PLC DZ1 and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to BP PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BP PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back BP PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling BP PLC DZ1 to buy it.

Moving together with BPE Stock

0.66	TOTA	TotalEnergies SE	Pair Corr
0.68	TOTB	TotalEnergies SE	Pair Corr
0.8	BPE5	BP plc	Pair Corr
0.72	BSU	BP plc	Pair Corr
0.73	BSU	BP plc	Pair Corr

Moving against BPE Stock

0.67	CHV	Chevron	Pair Corr
0.64	CHV	Chevron	Pair Corr
0.42	XONA	Exxon Mobil	Pair Corr

Related Correlations Analysis

	8AHB	1QK	LG1	PO6	N5Z	DF0	690D
8AHB		0.34	0.05	0.71	-0.27	0.14	0.73	8AHB
1QK	0.34		-0.29	0.05	-0.2	0.36	0.43	1QK
LG1	0.05	-0.29		0.4	-0.16	-0.38	-0.26	LG1
PO6	0.71	0.05	0.4		-0.21	0.04	0.36	PO6
N5Z	-0.27	-0.2	-0.16	-0.21		0.44	0.06	N5Z
DF0	0.14	0.36	-0.38	0.04	0.44		0.49	DF0
690D	0.73	0.43	-0.26	0.36	0.06	0.49		690D
	8AHB	1QK	LG1	PO6	N5Z	DF0	690D

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

690D	+ 0.73	8AHB
PO6	+ 0.71	8AHB
690D	+ 0.49	DF0
DF0	+ 0.44	N5Z
690D	+ 0.43	1QK
PO6	+ 0.4	LG1

High negative correlations

DF0	- 0.38	LG1
LG1	- 0.29	1QK
N5Z	- 0.27	8AHB
690D	- 0.26	LG1
N5Z	- 0.21	PO6
N5Z	- 0.2	1QK

Risk-Adjusted Indicators

There is a big difference between BPE Stock performing well and BP PLC Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze BP PLC's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
8AHB	1.95	0.13	0.03	0.35	2.34	(2.49)	5.04	(3.29)	15.65
1QK	1.25	0.04	(0.01)	0.17	1.40	(1.61)	3.45	(2.96)	9.07
LG1	1.70	(0.09)	(0.04)	(0.01)	2.17	(2.34)	3.03	(3.64)	17.30
PO6	1.11	0.00	(0.04)	0.10	1.32	(1.40)	2.15	(2.16)	7.36
N5Z	1.85	0.33	0.09	4.83	2.21	(2.20)	4.49	(3.56)	19.05
DF0	1.38	0.33	0.10	2.17	1.65	(1.83)	3.25	(3.60)	13.59
690D	1.75	0.27	0.08	(1.58)	1.74	(2.18)	4.93	(3.55)	11.05

Be your own money manager

Our tools can tell you how much better you can do entering a position in BP PLC without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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