Correlation Between Exxon and Oklahoma College
Can any of the company-specific risk be diversified away by investing in both Exxon and Oklahoma College 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 Oklahoma College 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 Oklahoma College Savings, you can compare the effects of market volatilities on Exxon and Oklahoma College 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 Oklahoma College. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Oklahoma College.
Diversification Opportunities for Exxon and Oklahoma College
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Exxon and Oklahoma is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Oklahoma College Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma College Savings 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 Oklahoma College. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma College Savings has no effect on the direction of Exxon i.e., Exxon and Oklahoma College go up and down completely randomly.
Pair Corralation between Exxon and Oklahoma College
Considering the 90-day investment horizon Exxon Mobil Corp is expected to under-perform the Oklahoma College. In addition to that, Exxon is 1.55 times more volatile than Oklahoma College Savings. It trades about -0.01 of its total potential returns per unit of risk. Oklahoma College Savings is currently generating about 0.29 per unit of volatility. If you would invest 1,226 in Oklahoma College Savings on November 3, 2024 and sell it today you would earn a total of 62.00 from holding Oklahoma College Savings or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exxon Mobil Corp vs. Oklahoma College Savings
Performance |
| Timeline |
| Exxon Mobil Corp |
| Oklahoma College Savings |
Exxon and Oklahoma College Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and Oklahoma College
The main advantage of trading using opposite Exxon and Oklahoma College positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, Oklahoma College 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 Oklahoma College will offset losses from the drop in Oklahoma College's long position.The idea behind Exxon Mobil Corp and Oklahoma College Savings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Oklahoma College vs. Wilmington Diversified Income | Oklahoma College vs. Madison Diversified Income | Oklahoma College vs. Aqr Diversified Arbitrage | Oklahoma College vs. Stone Ridge Diversified |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |