Correlation Between ATT and Exxon

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ATT 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 ATT and Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Exxon Mobil Corp, you can compare the effects of market volatilities on ATT 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 ATT with a short position of Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Exxon.

Diversification Opportunities for ATT and Exxon

-0.43
  Correlation Coefficient

Very good diversification

The 3 months correlation between ATT and Exxon is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc 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 ATT 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 ATT Inc 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 ATT i.e., ATT and Exxon go up and down completely randomly.

Pair Corralation between ATT and Exxon

Taking into account the 90-day investment horizon ATT Inc is expected to under-perform the Exxon. But the stock apears to be less risky and, when comparing its historical volatility, ATT Inc is 1.61 times less risky than Exxon. The stock trades about -0.12 of its potential returns per unit of risk. The Exxon Mobil Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  9,495  in Exxon Mobil Corp on July 6, 2022 and sell it today you would earn a total of  32.00  from holding Exxon Mobil Corp or generate 0.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

ATT Inc  vs.  Exxon Mobil Corp

 Performance (%) 
       Timeline  
ATT Inc 
ATT Performance
0 of 100
Over the last 90 days ATT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in November 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

ATT Price Channel

Exxon Mobil Corp 
Exxon Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Exxon Mobil Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Exxon revealed solid returns over the last few months and may actually be approaching a breakup point.

Exxon Price Channel

ATT and Exxon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ATT and Exxon

The main advantage of trading using opposite ATT and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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.
ATT vs. Amazon Inc
The idea behind ATT Inc and Exxon Mobil Corp 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.
Exxon vs. Chevron Corp
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

Other Complementary Tools

Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go