Correlation Between Exxon and HOLOGIC
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By analyzing existing cross correlation between Exxon Mobil Corp and HOLOGIC INC 325, you can compare the effects of market volatilities on Exxon and HOLOGIC 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 HOLOGIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and HOLOGIC.
Diversification Opportunities for Exxon and HOLOGIC
Very good diversification
The 3 months correlation between Exxon and HOLOGIC is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and HOLOGIC INC 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOLOGIC INC 325 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 HOLOGIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOLOGIC INC 325 has no effect on the direction of Exxon i.e., Exxon and HOLOGIC go up and down completely randomly.
Pair Corralation between Exxon and HOLOGIC
Considering the 90-day investment horizon Exxon is expected to generate 124.77 times less return on investment than HOLOGIC. But when comparing it to its historical volatility, Exxon Mobil Corp is 55.95 times less risky than HOLOGIC. It trades about 0.03 of its potential returns per unit of risk. HOLOGIC INC 325 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,840 in HOLOGIC INC 325 on September 2, 2024 and sell it today you would lose (118.00) from holding HOLOGIC INC 325 or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.18% |
| Values | Daily Returns |
Exxon Mobil Corp vs. HOLOGIC INC 325
Performance |
| Timeline |
| Exxon Mobil Corp |
| HOLOGIC INC 325 |
Exxon and HOLOGIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and HOLOGIC
The main advantage of trading using opposite Exxon and HOLOGIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, HOLOGIC 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 HOLOGIC will offset losses from the drop in HOLOGIC's long position.The idea behind Exxon Mobil Corp and HOLOGIC INC 325 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.| HOLOGIC vs. Diageo PLC ADR | HOLOGIC vs. Anheuser Busch Inbev | HOLOGIC vs. Universal | HOLOGIC vs. Albertsons Companies |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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