Correlation Between Exxon and DANAHER
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By analyzing existing cross correlation between Exxon Mobil Corp and DANAHER P 4375, you can compare the effects of market volatilities on Exxon and DANAHER 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 DANAHER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and DANAHER.
Diversification Opportunities for Exxon and DANAHER
Modest diversification
The 3 months correlation between Exxon and DANAHER is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and DANAHER P 4375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DANAHER P 4375 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 DANAHER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DANAHER P 4375 has no effect on the direction of Exxon i.e., Exxon and DANAHER go up and down completely randomly.
Pair Corralation between Exxon and DANAHER
Considering the 90-day investment horizon Exxon is expected to generate 468.07 times less return on investment than DANAHER. But when comparing it to its historical volatility, Exxon Mobil Corp is 74.71 times less risky than DANAHER. It trades about 0.01 of its potential returns per unit of risk. DANAHER P 4375 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,933 in DANAHER P 4375 on October 23, 2024 and sell it today you would earn a total of 441.00 from holding DANAHER P 4375 or generate 4.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 40.93% |
Values | Daily Returns |
Exxon Mobil Corp vs. DANAHER P 4375
Performance |
Timeline |
Exxon Mobil Corp |
DANAHER P 4375 |
Exxon and DANAHER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exxon and DANAHER
The main advantage of trading using opposite Exxon and DANAHER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, DANAHER 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 DANAHER will offset losses from the drop in DANAHER'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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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