Correlation Between QEP Resources and Exxon
Can any of the company-specific risk be diversified away by investing in both QEP Resources and Exxon 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 QEP Resources and Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QEP Resources and Exxon Mobil Corp, you can compare the effects of market volatilities on QEP Resources and Exxon 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 QEP Resources with a short position of Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of QEP Resources and Exxon.
Diversification Opportunities for QEP Resources and Exxon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between QEP and Exxon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding QEP Resources and Exxon Mobil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxon Mobil Corp and QEP Resources 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 QEP Resources are associated (or correlated) with Exxon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxon Mobil Corp has no effect on the direction of QEP Resources i.e., QEP Resources and Exxon go up and down completely randomly.
Pair Corralation between QEP Resources and Exxon
If you would invest 8,542 in Exxon Mobil Corp on January 24, 2024 and sell it today you would earn a total of 3,514 from holding Exxon Mobil Corp or generate 41.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
QEP Resources vs. Exxon Mobil Corp
Performance |
| Timeline |
| QEP Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Exxon Mobil Corp |
QEP Resources and Exxon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QEP Resources and Exxon
The main advantage of trading using opposite QEP Resources and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QEP Resources position performs unexpectedly, Exxon 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 Exxon will offset losses from the drop in Exxon's long position.| QEP Resources vs. SunLink Health Systems | QEP Resources vs. Premium Beverage Group | QEP Resources vs. Monster Beverage Corp | QEP Resources vs. Omni Health |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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