Correlation Between Exxon and Quebecor

Can any of the company-specific risk be diversified away by investing in both Exxon and Quebecor 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 Quebecor into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EXXON MOBIL CDR and Quebecor, you can compare the effects of market volatilities on Exxon and Quebecor 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 Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Quebecor.

Diversification Opportunities for Exxon and Quebecor

0.62

Correlation Coefficient

Exxon  Quebecor

Poor diversification

The 3 months correlation between Exxon and Quebecor is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding EXXON MOBIL CDR and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 CDR are associated (or correlated) with Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of Exxon i.e., Exxon and Quebecor go up and down completely randomly.

Pair Corralation between Exxon and Quebecor

Assuming the 90 days trading horizon Exxon is expected to generate 11.98 times less return on investment than Quebecor. In addition to that, Exxon is 1.07 times more volatile than Quebecor. It trades about 0.01 of its total potential returns per unit of risk. Quebecor is currently generating about 0.16 per unit of volatility. If you would invest  3,711  in Quebecor on April 24, 2025 and sell it today you would earn a total of  534.00  from holding Quebecor or generate 14.39% return on investment over 90 days.

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

EXXON MOBIL CDR  vs.  Quebecor

EXXON MOBIL CDR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in EXXON MOBIL CDR are ranked lower than 1 (%) 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 recent stock price disarray, may contribute to short-term losses for the investors.

Quebecor

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quebecor are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Quebecor unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exxon and Quebecor

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

The idea behind EXXON MOBIL CDR and Quebecor 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.