Correlation Between Xtera Communications and Exxon

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

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

Diversification Opportunities for Xtera Communications and Exxon

0.0

Correlation Coefficient

Xtera Communications  Exxon

Pay attention - limited upside

The 3 months correlation between Xtera and Exxon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtera Communications 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 Xtera Communications 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 Xtera Communications 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 Xtera Communications i.e., Xtera Communications and Exxon go up and down completely randomly.

Pair Corralation between Xtera Communications and Exxon

If you would invest  0.01  in Xtera Communications on September 15, 2025 and sell it today you would earn a total of  0.00  from holding Xtera Communications or generate 0.0% return on investment over 90 days.

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

Xtera Communications  vs.  Exxon Mobil Corp

Xtera Communications

Risk-Adjusted Performance

Weakest

Over the last 90 days Xtera Communications has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Xtera Communications is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Exxon Mobil Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Exxon Mobil Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Exxon may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Xtera Communications and Exxon

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

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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.