Correlation Between Afya and EXXON
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By analyzing existing cross correlation between Afya and EXXON MOBIL P, you can compare the effects of market volatilities on Afya and EXXON 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 Afya with a short position of EXXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afya and EXXON.
Diversification Opportunities for Afya and EXXON
Very weak diversification
The 3 months correlation between Afya and EXXON is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Afya and EXXON MOBIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXXON MOBIL P and Afya 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 Afya are associated (or correlated) with EXXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXXON MOBIL P has no effect on the direction of Afya i.e., Afya and EXXON go up and down completely randomly.
Pair Corralation between Afya and EXXON
Given the investment horizon of 90 days Afya is expected to generate 1.46 times more return on investment than EXXON. However, Afya is 1.46 times more volatile than EXXON MOBIL P. It trades about 0.09 of its potential returns per unit of risk. EXXON MOBIL P is currently generating about -0.03 per unit of risk. If you would invest 1,563 in Afya on November 3, 2024 and sell it today you would earn a total of 51.00 from holding Afya or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Afya vs. EXXON MOBIL P
Performance |
| Timeline |
| Afya |
| EXXON MOBIL P |
Afya and EXXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afya and EXXON
The main advantage of trading using opposite Afya and EXXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afya position performs unexpectedly, EXXON 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 EXXON will offset losses from the drop in EXXON's long position.| Afya vs. Adtalem Global Education | Afya vs. Laureate Education | Afya vs. American Public Education | Afya vs. Strategic Education |
| EXXON vs. FS KKR Capital | EXXON vs. Barings BDC | EXXON vs. Univest Pennsylvania | EXXON vs. Gladstone 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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