Correlation Between Exxon and 03835VAJ5
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By analyzing existing cross correlation between Exxon Mobil Corp and APTV 31 01 DEC 51, you can compare the effects of market volatilities on Exxon and 03835VAJ5 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 03835VAJ5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and 03835VAJ5.
Diversification Opportunities for Exxon and 03835VAJ5
Excellent diversification
The 3 months correlation between Exxon and 03835VAJ5 is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and APTV 31 01 DEC 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APTV 31 01 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 03835VAJ5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APTV 31 01 has no effect on the direction of Exxon i.e., Exxon and 03835VAJ5 go up and down completely randomly.
Pair Corralation between Exxon and 03835VAJ5
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 1.09 times more return on investment than 03835VAJ5. However, Exxon is 1.09 times more volatile than APTV 31 01 DEC 51. It trades about 0.03 of its potential returns per unit of risk. APTV 31 01 DEC 51 is currently generating about 0.01 per unit of risk. If you would invest 10,029 in Exxon Mobil Corp on September 3, 2024 and sell it today you would earn a total of 1,767 from holding Exxon Mobil Corp or generate 17.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.32% |
| Values | Daily Returns |
Exxon Mobil Corp vs. APTV 31 01 DEC 51
Performance |
| Timeline |
| Exxon Mobil Corp |
| APTV 31 01 |
Exxon and 03835VAJ5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and 03835VAJ5
The main advantage of trading using opposite Exxon and 03835VAJ5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, 03835VAJ5 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 03835VAJ5 will offset losses from the drop in 03835VAJ5's long position.The idea behind Exxon Mobil Corp and APTV 31 01 DEC 51 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 03835VAJ5 vs. Uber Technologies | 03835VAJ5 vs. Palomar Holdings | 03835VAJ5 vs. Lipocine | 03835VAJ5 vs. Arrow Electronics |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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