Correlation Between Exxon and Microsectors Gold

Can any of the company-specific risk be diversified away by investing in both Exxon and Microsectors Gold 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 Microsectors Gold 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 Microsectors Gold 3x, you can compare the effects of market volatilities on Exxon and Microsectors Gold 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 Microsectors Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Microsectors Gold.

Diversification Opportunities for Exxon and Microsectors Gold

0.5

Correlation Coefficient

Exxon  Microsectors Gold

Very weak diversification

The 3 months correlation between Exxon and Microsectors is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Microsectors Gold 3x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsectors Gold 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 Microsectors Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsectors Gold has no effect on the direction of Exxon i.e., Exxon and Microsectors Gold go up and down completely randomly.

Pair Corralation between Exxon and Microsectors Gold

Considering the 90-day investment horizon Exxon Mobil Corp is expected to under-perform the Microsectors Gold. But the stock apears to be less risky and, when comparing its historical volatility, Exxon Mobil Corp is 6.43 times less risky than Microsectors Gold. The stock trades about -0.01 of its potential returns per unit of risk. The Microsectors Gold 3x is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  11,198  in Microsectors Gold 3x on August 5, 2025 and sell it today you would lose (115.00) from holding Microsectors Gold 3x or give up 1.03% of portfolio value over 90 days.

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

Exxon Mobil Corp  vs.  Microsectors Gold 3x

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 8 (%) 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 December 2025.

Microsectors Gold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Microsectors Gold 3x are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Microsectors Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exxon and Microsectors Gold

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

The idea behind Exxon Mobil Corp and Microsectors Gold 3x 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.