Correlation Between Exxon and 437076BS0
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By analyzing existing cross correlation between Exxon Mobil Corp and HOME DEPOT INC, you can compare the effects of market volatilities on Exxon and 437076BS0 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 437076BS0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and 437076BS0.
Diversification Opportunities for Exxon and 437076BS0
Very good diversification
The 3 months correlation between Exxon and 437076BS0 is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and HOME DEPOT INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOME DEPOT INC 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 437076BS0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOME DEPOT INC has no effect on the direction of Exxon i.e., Exxon and 437076BS0 go up and down completely randomly.
Pair Corralation between Exxon and 437076BS0
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 0.62 times more return on investment than 437076BS0. However, Exxon Mobil Corp is 1.61 times less risky than 437076BS0. It trades about 0.05 of its potential returns per unit of risk. HOME DEPOT INC is currently generating about -0.17 per unit of risk. If you would invest 11,632 in Exxon Mobil Corp on August 30, 2024 and sell it today you would earn a total of 134.00 from holding Exxon Mobil Corp or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Exxon Mobil Corp vs. HOME DEPOT INC
Performance |
| Timeline |
| Exxon Mobil Corp |
| HOME DEPOT INC |
Exxon and 437076BS0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and 437076BS0
The main advantage of trading using opposite Exxon and 437076BS0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, 437076BS0 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 437076BS0 will offset losses from the drop in 437076BS0's long position.| Exxon vs. BP PLC ADR | Exxon vs. Shell PLC ADR | Exxon vs. Petroleo Brasileiro Petrobras | Exxon vs. Suncor Energy |
| 437076BS0 vs. Arrow Electronics | 437076BS0 vs. Inflection Point Acquisition | 437076BS0 vs. Griffon | 437076BS0 vs. Chester Mining |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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