Correlation Between Exxon and ORACLE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Exxon Mobil Corp and ORACLE P 43, you can compare the effects of market volatilities on Exxon and ORACLE 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 ORACLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and ORACLE.
Diversification Opportunities for Exxon and ORACLE
Excellent diversification
The 3 months correlation between Exxon and ORACLE is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and ORACLE P 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORACLE P 43 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 ORACLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORACLE P 43 has no effect on the direction of Exxon i.e., Exxon and ORACLE go up and down completely randomly.
Pair Corralation between Exxon and ORACLE
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 1.21 times more return on investment than ORACLE. However, Exxon is 1.21 times more volatile than ORACLE P 43. It trades about 0.05 of its potential returns per unit of risk. ORACLE P 43 is currently generating about -0.12 per unit of risk. If you would invest 11,557 in Exxon Mobil Corp on August 28, 2024 and sell it today you would earn a total of 440.00 from holding Exxon Mobil Corp or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Exxon Mobil Corp vs. ORACLE P 43
Performance |
| Timeline |
| Exxon Mobil Corp |
| ORACLE P 43 |
Exxon and ORACLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and ORACLE
The main advantage of trading using opposite Exxon and ORACLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, ORACLE 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 ORACLE will offset losses from the drop in ORACLE's long position.The idea behind Exxon Mobil Corp and ORACLE P 43 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.| ORACLE vs. Kaiser Aluminum | ORACLE vs. Maanshan Iron Steel | ORACLE vs. Grupo Aeroportuario del | ORACLE vs. Mayfair Gold 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |