Correlation Between Tantech Holdings and Exxon
Can any of the company-specific risk be diversified away by investing in both Tantech Holdings 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 Tantech Holdings and Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tantech Holdings and Exxon Mobil Corp, you can compare the effects of market volatilities on Tantech Holdings 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 Tantech Holdings with a short position of Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tantech Holdings and Exxon.
Diversification Opportunities for Tantech Holdings and Exxon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tantech and Exxon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tantech Holdings 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 Tantech Holdings 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 Tantech Holdings 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 Tantech Holdings i.e., Tantech Holdings and Exxon go up and down completely randomly.
Pair Corralation between Tantech Holdings and Exxon
Given the investment horizon of 90 days Tantech Holdings is expected to under-perform the Exxon. In addition to that, Tantech Holdings is 5.94 times more volatile than Exxon Mobil Corp. It trades about -0.17 of its total potential returns per unit of risk. Exxon Mobil Corp is currently generating about 0.38 per unit of volatility. 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 | 100.0% |
Values | Daily Returns |
Tantech Holdings vs. Exxon Mobil Corp
Performance |
Timeline |
Tantech Holdings |
Exxon Mobil Corp |
Tantech Holdings and Exxon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tantech Holdings and Exxon
The main advantage of trading using opposite Tantech Holdings and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tantech Holdings 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.Tantech Holdings vs. Beiersdorf AG ADR | Tantech Holdings vs. Virgin Group Acquisition | Tantech Holdings vs. Yatsen Holding | Tantech Holdings vs. Coty Inc |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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