Correlation Between Exxon and SEP Acquisition
Can any of the company-specific risk be diversified away by investing in both Exxon and SEP Acquisition 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 SEP Acquisition 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 SEP Acquisition Corp, you can compare the effects of market volatilities on Exxon and SEP Acquisition 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 SEP Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and SEP Acquisition.
Diversification Opportunities for Exxon and SEP Acquisition
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exxon and SEP is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and SEP Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEP Acquisition Corp 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 SEP Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEP Acquisition Corp has no effect on the direction of Exxon i.e., Exxon and SEP Acquisition go up and down completely randomly.
Pair Corralation between Exxon and SEP Acquisition
If you would invest 1,026 in SEP Acquisition Corp on September 14, 2024 and sell it today you would earn a total of 0.00 from holding SEP Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Exxon Mobil Corp vs. SEP Acquisition Corp
Performance |
| Timeline |
| Exxon Mobil Corp |
| SEP Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Exxon and SEP Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and SEP Acquisition
The main advantage of trading using opposite Exxon and SEP Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, SEP Acquisition 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 SEP Acquisition will offset losses from the drop in SEP Acquisition's long position.| Exxon vs. Aquagold International | Exxon vs. Thrivent High Yield | Exxon vs. Morningstar Unconstrained Allocation | Exxon vs. Via Renewables |
| SEP Acquisition vs. AMCON Distributing | SEP Acquisition vs. Acco Brands | SEP Acquisition vs. Skillful Craftsman Education | SEP Acquisition vs. John Wiley Sons |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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