Correlation Between Exxon and ACGCAP
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By analyzing existing cross correlation between Exxon Mobil Corp and ACGCAP 195 30 JAN 26, you can compare the effects of market volatilities on Exxon and ACGCAP 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 ACGCAP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and ACGCAP.
Diversification Opportunities for Exxon and ACGCAP
Excellent diversification
The 3 months correlation between Exxon and ACGCAP is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and ACGCAP 195 30 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACGCAP 195 30 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 ACGCAP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACGCAP 195 30 has no effect on the direction of Exxon i.e., Exxon and ACGCAP go up and down completely randomly.
Pair Corralation between Exxon and ACGCAP
Considering the 90-day investment horizon Exxon Mobil Corp is expected to under-perform the ACGCAP. But the stock apears to be less risky and, when comparing its historical volatility, Exxon Mobil Corp is 2.67 times less risky than ACGCAP. The stock trades about -0.2 of its potential returns per unit of risk. The ACGCAP 195 30 JAN 26 is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 9,663 in ACGCAP 195 30 JAN 26 on November 3, 2024 and sell it today you would lose (703.00) from holding ACGCAP 195 30 JAN 26 or give up 7.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.05% |
| Values | Daily Returns |
Exxon Mobil Corp vs. ACGCAP 195 30 JAN 26
Performance |
| Timeline |
| Exxon Mobil Corp |
| ACGCAP 195 30 |
Exxon and ACGCAP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and ACGCAP
The main advantage of trading using opposite Exxon and ACGCAP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, ACGCAP 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 ACGCAP will offset losses from the drop in ACGCAP's long position.| Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras | Exxon vs. Chevron Corp |
| ACGCAP vs. Cedar Realty Trust | ACGCAP vs. Western Acquisition Ventures | ACGCAP vs. Inflection Point Acquisition | ACGCAP vs. Proficient Auto Logistics, |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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