Correlation Between Exxon and Teb Bancorp
Can any of the company-specific risk be diversified away by investing in both Exxon and Teb Bancorp 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 Teb Bancorp 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 Teb Bancorp, you can compare the effects of market volatilities on Exxon and Teb Bancorp 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 Teb Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Teb Bancorp.
Diversification Opportunities for Exxon and Teb Bancorp
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exxon and Teb is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Teb Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teb Bancorp 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 Teb Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teb Bancorp has no effect on the direction of Exxon i.e., Exxon and Teb Bancorp go up and down completely randomly.
Pair Corralation between Exxon and Teb Bancorp
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 0.3 times more return on investment than Teb Bancorp. However, Exxon Mobil Corp is 3.34 times less risky than Teb Bancorp. It trades about 0.08 of its potential returns per unit of risk. Teb Bancorp is currently generating about -0.02 per unit of risk. If you would invest 10,774 in Exxon Mobil Corp on November 7, 2024 and sell it today you would earn a total of 222.00 from holding Exxon Mobil Corp or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Exxon Mobil Corp vs. Teb Bancorp
Performance |
| Timeline |
| Exxon Mobil Corp |
| Teb Bancorp |
Exxon and Teb Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and Teb Bancorp
The main advantage of trading using opposite Exxon and Teb Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, Teb Bancorp 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 Teb Bancorp will offset losses from the drop in Teb Bancorp's long position.| Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras | Exxon vs. TotalEnergies SE ADR |
| Teb Bancorp vs. Sound Financial Bancorp | Teb Bancorp vs. Finward Bancorp | Teb Bancorp vs. Franklin Financial Services | Teb Bancorp vs. Community West Bancshares |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |