Correlation Between Exxon and 88579YBJ9
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By analyzing existing cross correlation between Exxon Mobil Corp and 3M CO, you can compare the effects of market volatilities on Exxon and 88579YBJ9 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 88579YBJ9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and 88579YBJ9.
Diversification Opportunities for Exxon and 88579YBJ9
Very good diversification
The 3 months correlation between Exxon and 88579YBJ9 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and 3M CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 88579YBJ9 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 88579YBJ9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 88579YBJ9 has no effect on the direction of Exxon i.e., Exxon and 88579YBJ9 go up and down completely randomly.
Pair Corralation between Exxon and 88579YBJ9
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 2.06 times more return on investment than 88579YBJ9. However, Exxon is 2.06 times more volatile than 3M CO. It trades about 0.03 of its potential returns per unit of risk. 3M CO is currently generating about 0.01 per unit of risk. If you would invest 9,682 in Exxon Mobil Corp on August 30, 2024 and sell it today you would earn a total of 2,084 from holding Exxon Mobil Corp or generate 21.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Exxon Mobil Corp vs. 3M CO
Performance |
| Timeline |
| Exxon Mobil Corp |
| 88579YBJ9 |
Exxon and 88579YBJ9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and 88579YBJ9
The main advantage of trading using opposite Exxon and 88579YBJ9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, 88579YBJ9 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 88579YBJ9 will offset losses from the drop in 88579YBJ9's long position.The idea behind Exxon Mobil Corp and 3M CO 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.| 88579YBJ9 vs. Payoneer Global | 88579YBJ9 vs. Digi International | 88579YBJ9 vs. Amkor Technology | 88579YBJ9 vs. Where Food Comes |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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