Correlation Between Exxon and KINDER
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By analyzing existing cross correlation between Exxon Mobil Corp and KINDER MORGAN INC, you can compare the effects of market volatilities on Exxon and KINDER 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 KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and KINDER.
Diversification Opportunities for Exxon and KINDER
Very good diversification
The 3 months correlation between Exxon and KINDER is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and KINDER MORGAN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN 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 KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN INC has no effect on the direction of Exxon i.e., Exxon and KINDER go up and down completely randomly.
Pair Corralation between Exxon and KINDER
Considering the 90-day investment horizon Exxon is expected to generate 52.43 times less return on investment than KINDER. But when comparing it to its historical volatility, Exxon Mobil Corp is 40.61 times less risky than KINDER. It trades about 0.04 of its potential returns per unit of risk. KINDER MORGAN INC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,055 in KINDER MORGAN INC on September 1, 2024 and sell it today you would earn a total of 455.00 from holding KINDER MORGAN INC or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.12% |
| Values | Daily Returns |
Exxon Mobil Corp vs. KINDER MORGAN INC
Performance |
| Timeline |
| Exxon Mobil Corp |
| KINDER MORGAN INC |
Exxon and KINDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and KINDER
The main advantage of trading using opposite Exxon and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER's long position.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
| KINDER vs. Iridium Communications | KINDER vs. East Africa Metals | KINDER vs. Barrick Gold Corp | KINDER vs. Uranium Energy Corp |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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