Correlation Between Brera Holdings and Exxon

Can any of the company-specific risk be diversified away by investing in both Brera 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 Brera Holdings and Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brera Holdings PLC and Exxon Mobil Corp, you can compare the effects of market volatilities on Brera 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 Brera Holdings with a short position of Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brera Holdings and Exxon.

Diversification Opportunities for Brera Holdings and Exxon

-0.24

Correlation Coefficient

Brera Holdings  Exxon

Very good diversification

The 3 months correlation between Brera and Exxon is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Brera Holdings PLC 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 Brera 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 Brera Holdings PLC 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 Brera Holdings i.e., Brera Holdings and Exxon go up and down completely randomly.

Pair Corralation between Brera Holdings and Exxon

Given the investment horizon of 90 days Brera Holdings is expected to generate 2.1 times less return on investment than Exxon. In addition to that, Brera Holdings is 6.55 times more volatile than Exxon Mobil Corp. It trades about 0.01 of its total potential returns per unit of risk. Exxon Mobil Corp is currently generating about 0.14 per unit of volatility. If you would invest  10,554  in Exxon Mobil Corp on December 27, 2024 and sell it today you would earn a total of  1,273  from holding Exxon Mobil Corp or generate 12.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Brera Holdings PLC  vs.  Exxon Mobil Corp

Brera Holdings PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brera Holdings PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Brera Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Exxon Mobil Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exxon Mobil Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Exxon may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Brera Holdings and Exxon

The main advantage of trading using opposite Brera Holdings and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brera 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.

The idea behind Brera Holdings PLC 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.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.