Correlation Between Exxon and IShares IBonds
Can any of the company-specific risk be diversified away by investing in both Exxon and IShares IBonds 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 IShares IBonds 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 iShares iBonds 2026, you can compare the effects of market volatilities on Exxon and IShares IBonds 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 IShares IBonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and IShares IBonds.
Diversification Opportunities for Exxon and IShares IBonds
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Exxon and IShares is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and iShares iBonds 2026 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares iBonds 2026 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 IShares IBonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares iBonds 2026 has no effect on the direction of Exxon i.e., Exxon and IShares IBonds go up and down completely randomly.
Pair Corralation between Exxon and IShares IBonds
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 8.99 times more return on investment than IShares IBonds. However, Exxon is 8.99 times more volatile than iShares iBonds 2026. It trades about 0.03 of its potential returns per unit of risk. iShares iBonds 2026 is currently generating about 0.11 per unit of risk. If you would invest 11,626 in Exxon Mobil Corp on August 30, 2024 and sell it today you would earn a total of 140.00 from holding Exxon Mobil Corp or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exxon Mobil Corp vs. iShares iBonds 2026
Performance |
| Timeline |
| Exxon Mobil Corp |
| iShares iBonds 2026 |
Exxon and IShares IBonds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and IShares IBonds
The main advantage of trading using opposite Exxon and IShares IBonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, IShares IBonds 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 IShares IBonds will offset losses from the drop in IShares IBonds' long position.| Exxon vs. BP PLC ADR | Exxon vs. Shell PLC ADR | Exxon vs. Petroleo Brasileiro Petrobras | Exxon vs. Suncor Energy |
| IShares IBonds vs. iShares iBonds 2025 | IShares IBonds vs. iShares iBonds 2024 | IShares IBonds vs. iShares iBonds 2027 | IShares IBonds vs. iShares Trust |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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