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 10,084 in Exxon Mobil Corp on February 14, 2024 and sell it today you would earn a total of 1,707 from holding Exxon Mobil Corp or generate 16.93% 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.The idea behind Exxon Mobil Corp and Yahoo Inc 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.Yahoo vs. NMI Holdings | Yahoo vs. Hanover Foods | Yahoo vs. QBE Insurance Group | Yahoo vs. Marfrig Global Foods |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |