Correlation Between Exxon and Yahoo
Can any of the company-specific risk be diversified away by investing in both Exxon and Yahoo 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 and Yahoo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exxon Mobil Corp and Yahoo Inc, you can compare the effects of market volatilities on Exxon and Yahoo 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 Yahoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Yahoo.
Diversification Opportunities for Exxon and Yahoo
Pay attention - limited upside
The 3 months correlation between Exxon and Yahoo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Yahoo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yahoo Inc 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 Yahoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yahoo Inc has no effect on the direction of Exxon i.e., Exxon and Yahoo go up and down completely randomly.
Pair Corralation between Exxon and Yahoo
If you would invest 11,379 in Exxon Mobil Corp on January 26, 2024 and sell it today you would earn a total of 726.00 from holding Exxon Mobil Corp or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Exxon Mobil Corp vs. Yahoo Inc
Performance |
| Timeline |
| Exxon Mobil Corp |
| Yahoo Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Exxon and Yahoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and Yahoo
The main advantage of trading using opposite Exxon and Yahoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, Yahoo 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 Yahoo will offset losses from the drop in Yahoo's long position.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
| Yahoo vs. Air Transport Services | Yahoo vs. Alto Ingredients | Yahoo vs. Alaska Air Group | Yahoo vs. Azul SA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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