Correlation Between Dynagas LNG and Exxon
Can any of the company-specific risk be diversified away by investing in both Dynagas LNG 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 Dynagas LNG and Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynagas LNG Partners and Exxon Mobil Corp, you can compare the effects of market volatilities on Dynagas LNG 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 Dynagas LNG with a short position of Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynagas LNG and Exxon.
Diversification Opportunities for Dynagas LNG and Exxon
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dynagas and Exxon is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dynagas LNG Partners 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 Dynagas LNG 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 Dynagas LNG Partners 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 Dynagas LNG i.e., Dynagas LNG and Exxon go up and down completely randomly.
Pair Corralation between Dynagas LNG and Exxon
Given the investment horizon of 90 days Dynagas LNG Partners is expected to under-perform the Exxon. In addition to that, Dynagas LNG is 1.53 times more volatile than Exxon Mobil Corp. It trades about -0.34 of its total potential returns per unit of risk. Exxon Mobil Corp is currently generating about 0.1 per unit of volatility. If you would invest 10,731 in Exxon Mobil Corp on November 2, 2024 and sell it today you would earn a total of 226.00 from holding Exxon Mobil Corp or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynagas LNG Partners vs. Exxon Mobil Corp
Performance |
| Timeline |
| Dynagas LNG Partners |
| Exxon Mobil Corp |
Dynagas LNG and Exxon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynagas LNG and Exxon
The main advantage of trading using opposite Dynagas LNG and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynagas LNG 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.| Dynagas LNG vs. Tidewater Midstream and | Dynagas LNG vs. Martin Midstream Partners | Dynagas LNG vs. Kinetik Holdings | Dynagas LNG vs. Dynagas LNG Partners |
| Exxon vs. BP PLC ADR | Exxon vs. Shell PLC ADR | Exxon vs. Petroleo Brasileiro Petrobras | Exxon vs. Suncor Energy |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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