Correlation Between Chunghwa Telecom and Marathon Petroleum

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Chunghwa Telecom and Marathon Petroleum 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 Chunghwa Telecom and Marathon Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chunghwa Telecom Co, and Marathon Petroleum, you can compare the effects of market volatilities on Chunghwa Telecom and Marathon Petroleum 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 Chunghwa Telecom with a short position of Marathon Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chunghwa Telecom and Marathon Petroleum.

Diversification Opportunities for Chunghwa Telecom and Marathon Petroleum

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Chunghwa Telecom and Marathon Petroleum

If you would invest  4,316  in Chunghwa Telecom Co, on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Chunghwa Telecom Co, or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Chunghwa Telecom Co,  vs.  Marathon Petroleum

 Performance 
       Timeline  
Chunghwa Telecom Co, 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Chunghwa Telecom Co, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical indicators, Chunghwa Telecom is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Marathon Petroleum 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Marathon Petroleum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Chunghwa Telecom and Marathon Petroleum Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Chunghwa Telecom and Marathon Petroleum

The main advantage of trading using opposite Chunghwa Telecom and Marathon Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chunghwa Telecom position performs unexpectedly, Marathon Petroleum 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 Marathon Petroleum will offset losses from the drop in Marathon Petroleum's long position.
The idea behind Chunghwa Telecom Co, and Marathon Petroleum 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.
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Other Complementary Tools

Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Transaction History
View history of all your transactions and understand their impact on performance
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities