Correlation Between Exxon and 594918CB8
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By analyzing existing cross correlation between Exxon Mobil Corp and MICROSOFT P 45, you can compare the effects of market volatilities on Exxon and 594918CB8 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 594918CB8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and 594918CB8.
Diversification Opportunities for Exxon and 594918CB8
Excellent diversification
The 3 months correlation between Exxon and 594918CB8 is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and MICROSOFT P 45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICROSOFT P 45 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 594918CB8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICROSOFT P 45 has no effect on the direction of Exxon i.e., Exxon and 594918CB8 go up and down completely randomly.
Pair Corralation between Exxon and 594918CB8
Considering the 90-day investment horizon Exxon is expected to generate 1.34 times less return on investment than 594918CB8. But when comparing it to its historical volatility, Exxon Mobil Corp is 1.14 times less risky than 594918CB8. It trades about 0.05 of its potential returns per unit of risk. MICROSOFT P 45 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,080 in MICROSOFT P 45 on August 25, 2024 and sell it today you would earn a total of 918.00 from holding MICROSOFT P 45 or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.03% |
| Values | Daily Returns |
Exxon Mobil Corp vs. MICROSOFT P 45
Performance |
| Timeline |
| Exxon Mobil Corp |
| MICROSOFT P 45 |
Exxon and 594918CB8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and 594918CB8
The main advantage of trading using opposite Exxon and 594918CB8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, 594918CB8 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 594918CB8 will offset losses from the drop in 594918CB8's long position.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
| 594918CB8 vs. The Coca Cola | 594918CB8 vs. JPMorgan Chase Co | 594918CB8 vs. Dupont De Nemours | 594918CB8 vs. Alcoa 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 Stocks Directory module to find actively traded stocks across global markets.
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