Startrader

Which will perform better? $XOM VS $BP #spread #pairs #stocks

NYSE:XOM   EXXON MOBIL CORP
255 0 1
Pairs Forecast: BP             will outperform XOM             in the next 2 trading day
strategy: Cointegration, Correlation and technical analysis

Trading pairs Xom             vs BP             which has moved from its correlation can be done based on cointegration or analyzing the prices of the stock pairs and tries to profit from the mean-reversion proces.

Cointegration (right chart): The trader should look for the divergence pairs that have moved away from each other and and then back together in a regular pattern.

Technical Analysis:
Exxon move together very closely and has a maximal correlation with BP             . This means it's profitable when the relative value between the two assets is perturbed from equilibrium, you can take a contrarian position and
profit from the spread trading as the prices revert back to their long-run mean.
English
English (UK)
English (IN)
Deutsch
Français
Español
Italiano
Polski
Türkçe
Русский
Português
Bahasa Indonesia
Bahasa Melayu
ภาษาไทย
Tiếng Việt
日本語
한국어
简体
台灣
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out