Correlation Between Etablissementen Franz and Exxon
Can any of the company-specific risk be diversified away by investing in both Etablissementen Franz and Exxon 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 Etablissementen Franz and Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Etablissementen Franz Colruyt and Exxon Mobil Corp, you can compare the effects of market volatilities on Etablissementen Franz 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 Etablissementen Franz with a short position of Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Etablissementen Franz and Exxon.
Diversification Opportunities for Etablissementen Franz and Exxon
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Etablissementen and Exxon is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Etablissementen Franz Colruyt and Exxon Mobil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxon Mobil Corp and Etablissementen Franz 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 Etablissementen Franz Colruyt 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 Corp has no effect on the direction of Etablissementen Franz i.e., Etablissementen Franz and Exxon go up and down completely randomly.
Pair Corralation between Etablissementen Franz and Exxon
Assuming the 90 days horizon Etablissementen Franz Colruyt is expected to generate 1.81 times more return on investment than Exxon. However, Etablissementen Franz is 1.81 times more volatile than Exxon Mobil Corp. It trades about 0.02 of its potential returns per unit of risk. Exxon Mobil Corp is currently generating about 0.02 per unit of risk. If you would invest 1,179 in Etablissementen Franz Colruyt on September 3, 2024 and sell it today you would earn a total of 23.00 from holding Etablissementen Franz Colruyt or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Etablissementen Franz Colruyt vs. Exxon Mobil Corp
Performance |
| Timeline |
| Etablissementen Franz |
| Exxon Mobil Corp |
Etablissementen Franz and Exxon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Etablissementen Franz and Exxon
The main advantage of trading using opposite Etablissementen Franz and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Etablissementen Franz 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.| Etablissementen Franz vs. Eaton Vance Enhanced | Etablissementen Franz vs. Exxon Mobil Corp | Etablissementen Franz vs. HP Inc | Etablissementen Franz vs. Alcoa Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| 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 | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |