Correlation Between Exxon and Jackpot Digital

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

Diversification Opportunities for Exxon and Jackpot Digital

-0.33
  Correlation Coefficient

Very good diversification

The 3 months correlation between Exxon and Jackpot is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Jackpot Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackpot Digital 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 Jackpot Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackpot Digital has no effect on the direction of Exxon i.e., Exxon and Jackpot Digital go up and down completely randomly.

Pair Corralation between Exxon and Jackpot Digital

Considering the 90-day investment horizon Exxon Mobil Corp is expected to under-perform the Jackpot Digital. But the stock apears to be less risky and, when comparing its historical volatility, Exxon Mobil Corp is 7.17 times less risky than Jackpot Digital. The stock trades about -0.12 of its potential returns per unit of risk. The Jackpot Digital is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  4.83  in Jackpot Digital on September 5, 2024 and sell it today you would lose (0.13) from holding Jackpot Digital or give up 2.69% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Exxon Mobil Corp  vs.  Jackpot Digital

 Performance 
       Timeline  
Exxon Mobil Corp 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Exxon Mobil Corp are ranked lower than 2 (%) 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.
Jackpot Digital 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Jackpot Digital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Jackpot Digital is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Exxon and Jackpot Digital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Exxon and Jackpot Digital

The main advantage of trading using opposite Exxon and Jackpot Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, Jackpot Digital 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 Jackpot Digital will offset losses from the drop in Jackpot Digital's long position.
The idea behind Exxon Mobil Corp and Jackpot Digital 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities