BP PLC Correlations

BPE Stock

EUR 4.48 0.01 0.22%

The current 90-days correlation between BP PLC DZ1 and Exxon Mobil is 0.51 (i.e., Very 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 0.29 (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

0.71	TOTA	TotalEnergies SE	Pair Corr
0.74	TOTB	TotalEnergies SE	Pair Corr
0.87	BPE5	BP plc	Pair Corr
0.83	BSU	BP plc	Pair Corr
0.85	BSU	BP plc	Pair Corr
0.65	K9R	KENEDIX OFFICE INV	Pair Corr
0.63	PKX	POSCO Holdings	Pair Corr
0.79	GGG	GUDANG GARAM	Pair Corr

Moving against BPE Stock

0.67	CHV	Chevron	Pair Corr
0.62	CHV	Chevron	Pair Corr
0.5	KBIA	KB Financial Group	Pair Corr
0.41	XONA	Exxon Mobil	Pair Corr

Related Correlations Analysis

	XONA	CHV	CHV	TOTA	TOTB	PC6	BPE5	BSU	BPE
XONA		0.85	0.88	-0.41	-0.33	0.43	-0.19	-0.23	-0.41	XONA
CHV	0.85		0.98	-0.73	-0.71	0.31	-0.48	-0.48	-0.67	CHV
CHV	0.88	0.98		-0.71	-0.67	0.29	-0.42	-0.42	-0.62	CHV
TOTA	-0.41	-0.73	-0.71		0.92	0.05	0.68	0.68	0.71	TOTA
TOTB	-0.33	-0.71	-0.67	0.92		0.09	0.75	0.69	0.74	TOTB
PC6	0.43	0.31	0.29	0.05	0.09		-0.19	-0.26	-0.22	PC6
BPE5	-0.19	-0.48	-0.42	0.68	0.75	-0.19		0.92	0.87	BPE5
BSU	-0.23	-0.48	-0.42	0.68	0.69	-0.26	0.92		0.85	BSU
BPE	-0.41	-0.67	-0.62	0.71	0.74	-0.22	0.87	0.85		BPE
	XONA	CHV	CHV	TOTA	TOTB	PC6	BPE5	BSU	BPE

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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

CHV	+ 0.98	CHV
TOTB	+ 0.92	TOTA
BSU	+ 0.92	BPE5
CHV	+ 0.88	XONA
BPE	+ 0.87	BPE5
CHV	+ 0.85	XONA

High negative correlations

TOTA	- 0.73	CHV
TOTA	- 0.71	CHV
TOTB	- 0.71	CHV
TOTB	- 0.67	CHV
BPE	- 0.67	CHV
BPE	- 0.62	CHV

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
XONA	1.23	0.01	(0.02)	0.14	1.45	(1.26)	2.96	(2.13)	7.60
CHV	1.01	0.24	0.09	(4.85)	0.91	(1.18)	2.14	(1.99)	5.86
CHV	1.12	0.16	0.09	0.34	1.03	(1.23)	2.31	(2.36)	6.18
TOTA	1.16	(0.19)	0.00	1.60	0.00	0.00	2.48	(3.22)	8.29
TOTB	1.18	(0.27)	0.00	(0.38)	0.00	0.00	2.18	(2.99)	7.58
PC6	2.84	0.52	0.11	6.63	2.48	(4.80)	6.67	(5.06)	53.09
BPE5	1.28	(0.21)	0.00	(0.31)	0.00	0.00	1.96	(2.92)	8.11
BSU	1.36	(0.17)	0.00	(0.75)	0.00	0.00	2.72	(3.26)	9.87
BPE	2.10	(0.29)	0.00	(0.16)	0.00	0.00	4.58	(4.47)	12.58

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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