Correlation Between Exxon Mobil and Hellenic Petroleum
Can any of the company-specific risk be diversified away by investing in both Exxon Mobil and Hellenic Petroleum at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Exxon Mobil and Hellenic Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exxon Mobil and Hellenic Petroleum SA, you can compare the effects of market volatilities on Exxon Mobil and Hellenic Petroleum 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 Mobil with a short position of Hellenic Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon Mobil and Hellenic Petroleum.
Diversification Opportunities for Exxon Mobil and Hellenic Petroleum
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exxon and Hellenic is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil and Hellenic Petroleum SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Petroleum and Exxon Mobil 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 are associated (or correlated) with Hellenic Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Petroleum has no effect on the direction of Exxon Mobil i.e., Exxon Mobil and Hellenic Petroleum go up and down completely randomly.
Pair Corralation between Exxon Mobil and Hellenic Petroleum
Assuming the 90 days trading horizon Exxon Mobil is expected to generate 0.89 times more return on investment than Hellenic Petroleum. However, Exxon Mobil is 1.12 times less risky than Hellenic Petroleum. It trades about 0.08 of its potential returns per unit of risk. Hellenic Petroleum SA is currently generating about 0.01 per unit of risk. If you would invest 9,113 in Exxon Mobil on August 27, 2024 and sell it today you would earn a total of 2,663 from holding Exxon Mobil or generate 29.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exxon Mobil vs. Hellenic Petroleum SA
Performance |
| Timeline |
| Exxon Mobil |
| Hellenic Petroleum |
Exxon Mobil and Hellenic Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon Mobil and Hellenic Petroleum
The main advantage of trading using opposite Exxon Mobil and Hellenic Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon Mobil position performs unexpectedly, Hellenic Petroleum 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 Hellenic Petroleum will offset losses from the drop in Hellenic Petroleum's long position.| Exxon Mobil vs. Apple Inc | Exxon Mobil vs. Apple Inc | Exxon Mobil vs. Apple Inc | Exxon Mobil vs. Apple Inc |
| Hellenic Petroleum vs. GREENX METALS LTD | Hellenic Petroleum vs. CapitaLand Investment Limited | Hellenic Petroleum vs. Jacquet Metal Service | Hellenic Petroleum vs. REGAL ASIAN INVESTMENTS |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |