Correlation Between Excelerate Energy and Exxon
Can any of the company-specific risk be diversified away by investing in both Excelerate Energy 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 Excelerate Energy and Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelerate Energy and Exxon Mobil Corp, you can compare the effects of market volatilities on Excelerate Energy 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 Excelerate Energy with a short position of Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelerate Energy and Exxon.
Diversification Opportunities for Excelerate Energy and Exxon
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Excelerate and Exxon is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Excelerate Energy 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 Excelerate Energy 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 Excelerate Energy 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 Excelerate Energy i.e., Excelerate Energy and Exxon go up and down completely randomly.
Pair Corralation between Excelerate Energy and Exxon
Allowing for the 90-day total investment horizon Excelerate Energy is expected to under-perform the Exxon. In addition to that, Excelerate Energy is 1.56 times more volatile than Exxon Mobil Corp. It trades about -0.21 of its total potential returns per unit of risk. Exxon Mobil Corp is currently generating about -0.09 per unit of volatility. If you would invest 11,132 in Exxon Mobil Corp on November 18, 2024 and sell it today you would lose (308.00) from holding Exxon Mobil Corp or give up 2.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelerate Energy vs. Exxon Mobil Corp
Performance |
| Timeline |
| Excelerate Energy |
| Exxon Mobil Corp |
Excelerate Energy and Exxon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelerate Energy and Exxon
The main advantage of trading using opposite Excelerate Energy and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelerate Energy 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.| Excelerate Energy vs. Clearway Energy | Excelerate Energy vs. Brookfield Renewable Corp | Excelerate Energy vs. Brookfield Renewable Partners | Excelerate Energy vs. Enlight Renewable Energy |
| Exxon vs. TotalEnergies SE ADR | Exxon vs. Equinor ASA ADR | Exxon vs. Petrleo Brasileiro SA | Exxon vs. Ecopetrol SA ADR |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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