Correlation Between Exxon and Altisource Asset

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Exxon and Altisource Asset 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 Altisource Asset 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 Altisource Asset Management, you can compare the effects of market volatilities on Exxon and Altisource Asset 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 Altisource Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Altisource Asset.

Diversification Opportunities for Exxon and Altisource Asset

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Exxon and Altisource is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Altisource Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altisource Asset Man 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 Altisource Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altisource Asset Man has no effect on the direction of Exxon i.e., Exxon and Altisource Asset go up and down completely randomly.

Pair Corralation between Exxon and Altisource Asset

Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 0.44 times more return on investment than Altisource Asset. However, Exxon Mobil Corp is 2.28 times less risky than Altisource Asset. It trades about 0.11 of its potential returns per unit of risk. Altisource Asset Management is currently generating about 0.01 per unit of risk. If you would invest  3,968  in Exxon Mobil Corp on September 2, 2022 and sell it today you would earn a total of  7,112  from holding Exxon Mobil Corp or generate 179.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

Exxon Mobil Corp  vs.  Altisource Asset Management

 Performance (%) 
       Timeline  
Exxon Mobil Corp 
Exxon Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Exxon Mobil Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Exxon revealed solid returns over the last few months and may actually be approaching a breakup point.

Exxon Price Channel

Altisource Asset Man 
Altisource Performance
0 of 100
Over the last 90 days Altisource Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Altisource Asset is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Altisource Price Channel

Exxon and Altisource Asset Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Exxon and Altisource Asset

The main advantage of trading using opposite Exxon and Altisource Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, Altisource Asset 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 Altisource Asset will offset losses from the drop in Altisource Asset's long position.
Exxon vs. General Electric
Exxon vs. Home Depot
Exxon vs. International Business Machines
Exxon vs. Caterpillar
The idea behind Exxon Mobil Corp and Altisource Asset Management 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.
Altisource Asset vs. EnerNorth Industries
Altisource Asset vs. Independence Contract Drilling
Altisource Asset vs. Tuscany Energy
Altisource Asset vs. Awilco Drilling PLC
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go