Correlation Between Exxon and EXXON
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By analyzing existing cross correlation between Exxon Mobil Corp and EXXON MOBIL P, you can compare the effects of market volatilities on Exxon and EXXON 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 EXXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and EXXON.
Diversification Opportunities for Exxon and EXXON
Very good diversification
The 3 months correlation between Exxon and EXXON is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and EXXON MOBIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXXON MOBIL P 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 EXXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXXON MOBIL P has no effect on the direction of Exxon i.e., Exxon and EXXON go up and down completely randomly.
Pair Corralation between Exxon and EXXON
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 1.18 times more return on investment than EXXON. However, Exxon is 1.18 times more volatile than EXXON MOBIL P. It trades about 0.05 of its potential returns per unit of risk. EXXON MOBIL P is currently generating about -0.06 per unit of risk. If you would invest 11,557 in Exxon Mobil Corp on August 28, 2024 and sell it today you would earn a total of 440.00 from holding Exxon Mobil Corp or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Exxon Mobil Corp vs. EXXON MOBIL P
Performance |
| Timeline |
| Exxon Mobil Corp |
| EXXON MOBIL P |
Exxon and EXXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and EXXON
The main advantage of trading using opposite Exxon and EXXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, EXXON 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 EXXON will offset losses from the drop in EXXON's long position.The idea behind Exxon Mobil Corp and EXXON MOBIL P 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.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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