Correlation Between Exxon and 054536AA5
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By analyzing existing cross correlation between Exxon Mobil Corp and AXA SA 86, you can compare the effects of market volatilities on Exxon and 054536AA5 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 054536AA5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and 054536AA5.
Diversification Opportunities for Exxon and 054536AA5
Very good diversification
The 3 months correlation between Exxon and 054536AA5 is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and AXA SA 86 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA 86 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 054536AA5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA SA 86 has no effect on the direction of Exxon i.e., Exxon and 054536AA5 go up and down completely randomly.
Pair Corralation between Exxon and 054536AA5
Considering the 90-day investment horizon Exxon is expected to generate 23.59 times less return on investment than 054536AA5. But when comparing it to its historical volatility, Exxon Mobil Corp is 27.04 times less risky than 054536AA5. It trades about 0.05 of its potential returns per unit of risk. AXA SA 86 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 12,549 in AXA SA 86 on January 26, 2024 and sell it today you would lose (199.00) from holding AXA SA 86 or give up 1.59% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 90.28% |
Values | Daily Returns |
Exxon Mobil Corp vs. AXA SA 86
Performance |
Timeline |
Exxon Mobil Corp |
AXA SA 86 |
Exxon and 054536AA5 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exxon and 054536AA5
The main advantage of trading using opposite Exxon and 054536AA5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, 054536AA5 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 054536AA5 will offset losses from the drop in 054536AA5's long position.Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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