Correlation Between Exxon and 1ST SUMMIT
Can any of the company-specific risk be diversified away by investing in both Exxon and 1ST SUMMIT 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 1ST SUMMIT 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 1ST SUMMIT BANCORP, you can compare the effects of market volatilities on Exxon and 1ST SUMMIT 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 1ST SUMMIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and 1ST SUMMIT.
Diversification Opportunities for Exxon and 1ST SUMMIT
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Exxon and 1ST is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and 1ST SUMMIT BANCORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1ST SUMMIT BANCORP 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 1ST SUMMIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1ST SUMMIT BANCORP has no effect on the direction of Exxon i.e., Exxon and 1ST SUMMIT go up and down completely randomly.
Pair Corralation between Exxon and 1ST SUMMIT
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 0.64 times more return on investment than 1ST SUMMIT. However, Exxon Mobil Corp is 1.57 times less risky than 1ST SUMMIT. It trades about -0.06 of its potential returns per unit of risk. 1ST SUMMIT BANCORP is currently generating about -0.11 per unit of risk. If you would invest 11,662 in Exxon Mobil Corp on November 27, 2024 and sell it today you would lose (535.00) from holding Exxon Mobil Corp or give up 4.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exxon Mobil Corp vs. 1ST SUMMIT BANCORP
Performance |
| Timeline |
| Exxon Mobil Corp |
| 1ST SUMMIT BANCORP |
Exxon and 1ST SUMMIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and 1ST SUMMIT
The main advantage of trading using opposite Exxon and 1ST SUMMIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, 1ST SUMMIT 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 1ST SUMMIT will offset losses from the drop in 1ST SUMMIT's long position.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
| 1ST SUMMIT vs. Apollo Bancorp | 1ST SUMMIT vs. Oregon Pacific Bancorp | 1ST SUMMIT vs. The Farmers Bank | 1ST SUMMIT vs. Community Bankers |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |