Correlation Between Exxon and Oasis Petroleum
Can any of the company-specific risk be diversified away by investing in both Exxon and Oasis Petroleum 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 Oasis Petroleum 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 Oasis Petroleum, you can compare the effects of market volatilities on Exxon and Oasis Petroleum 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 Oasis Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Oasis Petroleum.
Diversification Opportunities for Exxon and Oasis Petroleum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Exxon and Oasis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Oasis Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasis Petroleum 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 Oasis Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasis Petroleum has no effect on the direction of Exxon i.e., Exxon and Oasis Petroleum go up and down completely randomly.
Pair Corralation between Exxon and Oasis Petroleum
If you would invest 10,265 in Exxon Mobil Corp on November 19, 2024 and sell it today you would earn a total of 559.00 from holding Exxon Mobil Corp or generate 5.45% 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. Oasis Petroleum
Performance |
| Timeline |
| Exxon Mobil Corp |
| Oasis Petroleum |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Exxon and Oasis Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and Oasis Petroleum
The main advantage of trading using opposite Exxon and Oasis Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, Oasis Petroleum 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 Oasis Petroleum will offset losses from the drop in Oasis Petroleum's long position.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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