Correlation Between Exxon and Micropac Industries
Can any of the company-specific risk be diversified away by investing in both Exxon and Micropac Industries 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 Micropac Industries 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 Micropac Industries, you can compare the effects of market volatilities on Exxon and Micropac Industries 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 Micropac Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Micropac Industries.
Diversification Opportunities for Exxon and Micropac Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Exxon and Micropac is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Micropac Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micropac Industries 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 Micropac Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micropac Industries has no effect on the direction of Exxon i.e., Exxon and Micropac Industries go up and down completely randomly.
Pair Corralation between Exxon and Micropac Industries
If you would invest 10,693 in Exxon Mobil Corp on November 9, 2024 and sell it today you would earn a total of 150.00 from holding Exxon Mobil Corp or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Exxon Mobil Corp vs. Micropac Industries
Performance |
| Timeline |
| Exxon Mobil Corp |
| Micropac Industries |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Exxon and Micropac Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and Micropac Industries
The main advantage of trading using opposite Exxon and Micropac Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, Micropac Industries 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 Micropac Industries will offset losses from the drop in Micropac Industries' long position.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
| Micropac Industries vs. LGL Group | Micropac Industries vs. Deswell Industries | Micropac Industries vs. SigmaTron International | Micropac Industries vs. Daktronics |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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