Correlation Between Exxon and Fobi AI

Can any of the company-specific risk be diversified away by investing in both Exxon and Fobi AI 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 Fobi AI 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 Fobi AI, you can compare the effects of market volatilities on Exxon and Fobi AI 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 Fobi AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Fobi AI.

Diversification Opportunities for Exxon and Fobi AI

-0.28

Correlation Coefficient

Exxon  Fobi AI

Very good diversification

The 3 months correlation between Exxon and Fobi is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Fobi AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fobi AI 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 Fobi AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fobi AI has no effect on the direction of Exxon i.e., Exxon and Fobi AI go up and down completely randomly.

Pair Corralation between Exxon and Fobi AI

Considering the 90-day investment horizon Exxon is expected to generate 76.55 times less return on investment than Fobi AI. But when comparing it to its historical volatility, Exxon Mobil Corp is 36.68 times less risky than Fobi AI. It trades about 0.09 of its potential returns per unit of risk. Fobi AI is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1.20  in Fobi AI on May 5, 2025 and sell it today you would lose (0.20) from holding Fobi AI or give up 16.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	82.54%
Values	Daily Returns

Exxon Mobil Corp  vs.  Fobi AI

Exxon Mobil Corp

Risk-Adjusted Performance

OK

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 weak basic indicators, Exxon may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Fobi AI

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fobi AI are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Fobi AI reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exxon and Fobi AI

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

The idea behind Exxon Mobil Corp and Fobi AI 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.