Correlation Analysis Between Ford Motor and Exxon

This module allows you to analyze existing cross correlation between Ford Motor Company and Exxon Mobil Corporation. You can compare the effects of market volatilities on Ford Motor and Exxon 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 Ford Motor with a short position of Exxon. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and Exxon.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Ford Motor  
00

Risk-Adjusted Performance

Over the last 30 days Ford Motor Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Ford Motor is not utilizing all of its potentials. The ongoing stock price tumult, may contribute to shorter-term losses for the shareholders.
Exxon Mobil  
00

Risk-Adjusted Performance

Over the last 30 days Exxon Mobil Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, Exxon is not utilizing all of its potentials. The existing stock price chaos, may contribute to medium term losses for the stakeholders.

Ford Motor and Exxon Volatility Contrast

 Predicted Return Density 
      Returns 

Ford Motor Company  vs.  Exxon Mobil Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to generate 1.03 times more return on investment than Exxon. However, Ford Motor is 1.03 times more volatile than Exxon Mobil Corporation. It trades about -0.05 of its potential returns per unit of risk. Exxon Mobil Corporation is currently generating about -0.05 per unit of risk. If you would invest  956.00  in Ford Motor Company on September 23, 2019 and sell it today you would lose (44.00)  from holding Ford Motor Company or give up 4.6% of portfolio value over 30 days.

Pair Corralation between Ford Motor and Exxon

0.73
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and Exxon

Ford Motor Company diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and Exxon Mobil Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Exxon Mobil and Ford Motor 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 Ford Motor Company are associated (or correlated) with Exxon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxon Mobil has no effect on the direction of Ford Motor i.e. Ford Motor and Exxon go up and down completely randomly.
See also your portfolio center. Please also try Theme Ratings module to determine theme ratings based on digital equity recommendations. macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.


 
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