Correlation Between Exxon and Return Stacked
Can any of the company-specific risk be diversified away by investing in both Exxon and Return Stacked 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 Return Stacked 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 Return Stacked Bonds, you can compare the effects of market volatilities on Exxon and Return Stacked 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 Return Stacked. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Return Stacked.
Diversification Opportunities for Exxon and Return Stacked
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exxon and Return is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Return Stacked Bonds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Return Stacked Bonds 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 Return Stacked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Return Stacked Bonds has no effect on the direction of Exxon i.e., Exxon and Return Stacked go up and down completely randomly.
Pair Corralation between Exxon and Return Stacked
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 1.46 times more return on investment than Return Stacked. However, Exxon is 1.46 times more volatile than Return Stacked Bonds. It trades about 0.0 of its potential returns per unit of risk. Return Stacked Bonds is currently generating about -0.09 per unit of risk. If you would invest 10,712 in Exxon Mobil Corp on January 6, 2025 and sell it today you would lose (278.00) from holding Exxon Mobil Corp or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.65% |
| Values | Daily Returns |
Exxon Mobil Corp vs. Return Stacked Bonds
Performance |
| Timeline |
| Exxon Mobil Corp |
| Return Stacked Bonds |
Exxon and Return Stacked Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and Return Stacked
The main advantage of trading using opposite Exxon and Return Stacked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, Return Stacked 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 Return Stacked will offset losses from the drop in Return Stacked's long position.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
| Return Stacked vs. ProShares Ultra 20 | Return Stacked vs. Universal | Return Stacked vs. Direxion Daily 7 10 | Return Stacked vs. ProShares UltraShort 7 10 |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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