Correlation Between Exxon and 70137WAG3
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By analyzing existing cross correlation between Exxon Mobil Corp and US70137WAG33, you can compare the effects of market volatilities on Exxon and 70137WAG3 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 70137WAG3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and 70137WAG3.
Diversification Opportunities for Exxon and 70137WAG3
Very good diversification
The 3 months correlation between Exxon and 70137WAG3 is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and US70137WAG33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US70137WAG33 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 70137WAG3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US70137WAG33 has no effect on the direction of Exxon i.e., Exxon and 70137WAG3 go up and down completely randomly.
Pair Corralation between Exxon and 70137WAG3
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 4.0 times more return on investment than 70137WAG3. However, Exxon is 4.0 times more volatile than US70137WAG33. It trades about 0.05 of its potential returns per unit of risk. US70137WAG33 is currently generating about 0.1 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 | Insignificant |
| Accuracy | 82.61% |
| Values | Daily Returns |
Exxon Mobil Corp vs. US70137WAG33
Performance |
| Timeline |
| Exxon Mobil Corp |
| US70137WAG33 |
Exxon and 70137WAG3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and 70137WAG3
The main advantage of trading using opposite Exxon and 70137WAG3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, 70137WAG3 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 70137WAG3 will offset losses from the drop in 70137WAG3's long position.| Exxon vs. BP PLC ADR | Exxon vs. Shell PLC ADR | Exxon vs. Petroleo Brasileiro Petrobras | Exxon vs. Suncor Energy |
| 70137WAG3 vs. Integral Ad Science | 70137WAG3 vs. Playtika Holding Corp | 70137WAG3 vs. Fidus Investment Corp | 70137WAG3 vs. CapitaLand Investment Limited |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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