Correlation Between Exxon and APPLE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Exxon Mobil Corp and APPLE INC 335, you can compare the effects of market volatilities on Exxon and APPLE 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 APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and APPLE.
Diversification Opportunities for Exxon and APPLE
Very good diversification
The 3 months correlation between Exxon and APPLE is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and APPLE INC 335 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC 335 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 APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC 335 has no effect on the direction of Exxon i.e., Exxon and APPLE go up and down completely randomly.
Pair Corralation between Exxon and APPLE
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 3.19 times more return on investment than APPLE. However, Exxon is 3.19 times more volatile than APPLE INC 335. It trades about 0.09 of its potential returns per unit of risk. APPLE INC 335 is currently generating about -0.22 per unit of risk. If you would invest 11,929 in Exxon Mobil Corp on August 24, 2024 and sell it today you would earn a total of 264.00 from holding Exxon Mobil Corp or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Exxon Mobil Corp vs. APPLE INC 335
Performance |
| Timeline |
| Exxon Mobil Corp |
| APPLE INC 335 |
Exxon and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and APPLE
The main advantage of trading using opposite Exxon and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, APPLE 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 APPLE will offset losses from the drop in APPLE's long position.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
| APPLE vs. Iridium Communications | APPLE vs. Playtika Holding Corp | APPLE vs. Nextplat Corp | APPLE vs. Ziff Davis |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |