Correlation Between Exxon and High Yield
Can any of the company-specific risk be diversified away by investing in both Exxon and High Yield 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 High Yield 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 High Yield Fund, you can compare the effects of market volatilities on Exxon and High Yield 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 High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and High Yield.
Diversification Opportunities for Exxon and High Yield
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Exxon and High is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Fund 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 High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Fund has no effect on the direction of Exxon i.e., Exxon and High Yield go up and down completely randomly.
Pair Corralation between Exxon and High Yield
If you would invest 814.00 in High Yield Fund on May 12, 2025 and sell it today you would earn a total of 0.00 from holding High Yield Fund or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 1.59% |
Values | Daily Returns |
Exxon Mobil Corp vs. High Yield Fund
Performance |
Timeline |
Exxon Mobil Corp |
High Yield Fund |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Exxon and High Yield Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exxon and High Yield
The main advantage of trading using opposite Exxon and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
High Yield vs. Virtus High Yield | High Yield vs. Siit High Yield | High Yield vs. Lord Abbett Short | High Yield vs. Jpmorgan High Yield |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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