Correlation Between Exxon and ATHENE
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By analyzing existing cross correlation between Exxon Mobil Corp and ATHENE HLDG LTD, you can compare the effects of market volatilities on Exxon and ATHENE 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 ATHENE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and ATHENE.
Diversification Opportunities for Exxon and ATHENE
Excellent diversification
The 3 months correlation between Exxon and ATHENE is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and ATHENE HLDG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HLDG LTD 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 ATHENE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATHENE HLDG LTD has no effect on the direction of Exxon i.e., Exxon and ATHENE go up and down completely randomly.
Pair Corralation between Exxon and ATHENE
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 2.06 times more return on investment than ATHENE. However, Exxon is 2.06 times more volatile than ATHENE HLDG LTD. It trades about 0.08 of its potential returns per unit of risk. ATHENE HLDG LTD is currently generating about -0.11 per unit of risk. If you would invest 11,574 in Exxon Mobil Corp on August 31, 2024 and sell it today you would earn a total of 222.00 from holding Exxon Mobil Corp or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Exxon Mobil Corp vs. ATHENE HLDG LTD
Performance |
| Timeline |
| Exxon Mobil Corp |
| ATHENE HLDG LTD |
Exxon and ATHENE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and ATHENE
The main advantage of trading using opposite Exxon and ATHENE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, ATHENE 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 ATHENE will offset losses from the drop in ATHENE's long position.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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