Correlation Analysis Between Merck and Exxon

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

Merck  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Merck Company are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Regardless of fairly consistent technical and fundamental indicators, Merck is not utilizing all of its potentials. The existing stock price confusion, may contribute to short-horizon losses for the traders.
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 latest sluggish performance, the Stock's technical indicators remain steady and the new chaos on Wall Street may also be a sign of medium term gains for the business stakeholders.

Merck and Exxon Volatility Contrast

 Predicted Return Density 
      Returns 

Merck Company Inc  vs.  Exxon Mobil Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Merck Company is expected to generate 0.92 times more return on investment than Exxon. However, Merck Company is 1.09 times less risky than Exxon. It trades about 0.06 of its potential returns per unit of risk. Exxon Mobil Corporation is currently generating about -0.08 per unit of risk. If you would invest  8,121  in Merck Company on September 18, 2019 and sell it today you would earn a total of  330.00  from holding Merck Company or generate 4.06% return on investment over 30 days.

Pair Corralation between Merck and Exxon

-0.55
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Merck and Exxon

Merck Company Inc diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding Merck Company Inc and Exxon Mobil Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Exxon Mobil and Merck 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 Merck 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 Merck i.e. Merck and Exxon go up and down completely randomly.
See also your portfolio center. Please also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.


 
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