Correlation Between Exxon and DISNEY
Specify exactly 2 symbols:
By analyzing existing cross correlation between Exxon Mobil Corp and DISNEY WALT NEW, you can compare the effects of market volatilities on Exxon and DISNEY 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 DISNEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and DISNEY.
Diversification Opportunities for Exxon and DISNEY
Good diversification
The 3 months correlation between Exxon and DISNEY is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and DISNEY WALT NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DISNEY WALT NEW 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 DISNEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DISNEY WALT NEW has no effect on the direction of Exxon i.e., Exxon and DISNEY go up and down completely randomly.
Pair Corralation between Exxon and DISNEY
Considering the 90-day investment horizon Exxon is expected to generate 2.12 times less return on investment than DISNEY. But when comparing it to its historical volatility, Exxon Mobil Corp is 1.57 times less risky than DISNEY. It trades about 0.07 of its potential returns per unit of risk. DISNEY WALT NEW is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,932 in DISNEY WALT NEW on August 31, 2024 and sell it today you would earn a total of 198.00 from holding DISNEY WALT NEW or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
Exxon Mobil Corp vs. DISNEY WALT NEW
Performance |
| Timeline |
| Exxon Mobil Corp |
| DISNEY WALT NEW |
Exxon and DISNEY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and DISNEY
The main advantage of trading using opposite Exxon and DISNEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, DISNEY 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 DISNEY will offset losses from the drop in DISNEY's long position.| Exxon vs. RLJ Lodging Trust | Exxon vs. Aquagold International | Exxon vs. Stepstone Group | Exxon vs. Morningstar Unconstrained Allocation |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |