Correlation Between Exxon and INTEL
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By analyzing existing cross correlation between Exxon Mobil Corp and INTEL PORATION, you can compare the effects of market volatilities on Exxon and INTEL 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 INTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and INTEL.
Diversification Opportunities for Exxon and INTEL
Poor diversification
The 3 months correlation between Exxon and INTEL is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and INTEL PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEL PORATION 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 INTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEL PORATION has no effect on the direction of Exxon i.e., Exxon and INTEL go up and down completely randomly.
Pair Corralation between Exxon and INTEL
Considering the 90-day investment horizon Exxon is expected to generate 12.15 times less return on investment than INTEL. In addition to that, Exxon is 1.24 times more volatile than INTEL PORATION. It trades about 0.01 of its total potential returns per unit of risk. INTEL PORATION is currently generating about 0.22 per unit of volatility. If you would invest 7,896 in INTEL PORATION on November 28, 2024 and sell it today you would earn a total of 423.00 from holding INTEL PORATION or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Exxon Mobil Corp vs. INTEL PORATION
Performance |
| Timeline |
| Exxon Mobil Corp |
| INTEL PORATION |
Exxon and INTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and INTEL
The main advantage of trading using opposite Exxon and INTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, INTEL 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 INTEL will offset losses from the drop in INTEL's long position.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
| INTEL vs. Integrated Media Technology | INTEL vs. Canlan Ice Sports | INTEL vs. Perseus Mining Limited | INTEL vs. East Africa Metals |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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