Correlation Between Exxon and Amphastar

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

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

Diversification Opportunities for Exxon and Amphastar

0.2

Correlation Coefficient

Exxon  Amphastar

Modest diversification

The 3 months correlation between Exxon and Amphastar is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Amphastar P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphastar P 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 Amphastar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphastar P has no effect on the direction of Exxon i.e., Exxon and Amphastar go up and down completely randomly.

Pair Corralation between Exxon and Amphastar

Considering the 90-day investment horizon Exxon is expected to generate 3.51 times less return on investment than Amphastar. But when comparing it to its historical volatility, Exxon Mobil Corp is 2.92 times less risky than Amphastar. It trades about 0.04 of its potential returns per unit of risk. Amphastar P is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2,251  in Amphastar P on July 24, 2025 and sell it today you would earn a total of  175.00  from holding Amphastar P or generate 7.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Exxon Mobil Corp  vs.  Amphastar P

Exxon Mobil Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Exxon Mobil Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Exxon is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Amphastar P

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Amphastar P are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Amphastar may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Exxon and Amphastar

The main advantage of trading using opposite Exxon and Amphastar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, Amphastar 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 Amphastar will offset losses from the drop in Amphastar's long position.

The idea behind Exxon Mobil Corp and Amphastar P 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.