Correlation Between Exxon and BSQUARE
Can any of the company-specific risk be diversified away by investing in both Exxon and BSQUARE 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 BSQUARE 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 BSQUARE, you can compare the effects of market volatilities on Exxon and BSQUARE 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 BSQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and BSQUARE.
Diversification Opportunities for Exxon and BSQUARE
Pay attention - limited upside
The 3 months correlation between Exxon and BSQUARE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and BSQUARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BSQUARE 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 BSQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSQUARE has no effect on the direction of Exxon i.e., Exxon and BSQUARE go up and down completely randomly.
Pair Corralation between Exxon and BSQUARE
If you would invest 10,630 in Exxon Mobil Corp on October 23, 2024 and sell it today you would earn a total of 602.00 from holding Exxon Mobil Corp or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Exxon Mobil Corp vs. BSQUARE
Performance |
| Timeline |
| Exxon Mobil Corp |
| BSQUARE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Exxon and BSQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and BSQUARE
The main advantage of trading using opposite Exxon and BSQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, BSQUARE 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 BSQUARE will offset losses from the drop in BSQUARE's long position.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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