Correlation Between Exxon and INTNED
Specify exactly 2 symbols:
By analyzing existing cross correlation between Exxon Mobil Corp and INTNED 4625 06 JAN 26, you can compare the effects of market volatilities on Exxon and INTNED 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 INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and INTNED.
Diversification Opportunities for Exxon and INTNED
Poor diversification
The 3 months correlation between Exxon and INTNED is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and INTNED 4625 06 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 4625 06 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 INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 4625 06 has no effect on the direction of Exxon i.e., Exxon and INTNED go up and down completely randomly.
Pair Corralation between Exxon and INTNED
Considering the 90-day investment horizon Exxon Mobil Corp is expected to under-perform the INTNED. In addition to that, Exxon is 4.51 times more volatile than INTNED 4625 06 JAN 26. It trades about -0.07 of its total potential returns per unit of risk. INTNED 4625 06 JAN 26 is currently generating about -0.13 per unit of volatility. If you would invest 10,028 in INTNED 4625 06 JAN 26 on September 19, 2024 and sell it today you would lose (166.00) from holding INTNED 4625 06 JAN 26 or give up 1.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 74.6% |
Values | Daily Returns |
Exxon Mobil Corp vs. INTNED 4625 06 JAN 26
Performance |
Timeline |
Exxon Mobil Corp |
INTNED 4625 06 |
Exxon and INTNED Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exxon and INTNED
The main advantage of trading using opposite Exxon and INTNED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, INTNED 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 INTNED will offset losses from the drop in INTNED's long position.Exxon vs. Aquagold International | Exxon vs. Thrivent High Yield | Exxon vs. Morningstar Unconstrained Allocation | Exxon vs. Via Renewables |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |