Correlation Between Exxon and Biophytis
Can any of the company-specific risk be diversified away by investing in both Exxon and Biophytis 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 Exxon and Biophytis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exxon Mobil Corp and Biophytis, you can compare the effects of market volatilities on Exxon and Biophytis 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 Exxon with a short position of Biophytis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Biophytis.
Diversification Opportunities for Exxon and Biophytis
Very good diversification
The 3 months correlation between Exxon and Biophytis is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Biophytis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biophytis and Exxon 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 Exxon Mobil Corp are associated (or correlated) with Biophytis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biophytis has no effect on the direction of Exxon i.e., Exxon and Biophytis go up and down completely randomly.
Pair Corralation between Exxon and Biophytis
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 0.15 times more return on investment than Biophytis. However, Exxon Mobil Corp is 6.6 times less risky than Biophytis. It trades about 0.04 of its potential returns per unit of risk. Biophytis is currently generating about -0.08 per unit of risk. If you would invest 9,959 in Exxon Mobil Corp on September 14, 2024 and sell it today you would earn a total of 1,160 from holding Exxon Mobil Corp or generate 11.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 53.01% |
| Values | Daily Returns |
Exxon Mobil Corp vs. Biophytis
Performance |
| Timeline |
| Exxon Mobil Corp |
| Biophytis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Exxon and Biophytis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and Biophytis
The main advantage of trading using opposite Exxon and Biophytis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, Biophytis 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 Biophytis will offset losses from the drop in Biophytis' long position.| Exxon vs. Aquagold International | Exxon vs. Thrivent High Yield | Exxon vs. Morningstar Unconstrained Allocation | Exxon vs. Via Renewables |
| Biophytis vs. NRx Pharmaceuticals | Biophytis vs. NRX Pharmaceuticals | Biophytis vs. Akari Therapeutics PLC | Biophytis vs. Armata Pharmaceuticals |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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