This module allows you to analyze existing cross correlation between Exxon Mobil Corporation and Ford Motor Company. You can compare the effects of market volatilities on Exxon and Ford Motor 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 Ford Motor. See also your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Ford Motor.
|Horizon||30 Days Login to change|
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.
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 and Ford Motor Volatility Contrast
Predicted Return Density
Exxon Mobil Corp. vs. Ford Motor Company
Considering 30-days investment horizon, Exxon Mobil Corporation is expected to under-perform the Ford Motor. But the stock apears to be less risky and, when comparing its historical volatility, Exxon Mobil Corporation is 1.03 times less risky than Ford Motor. The stock trades about -0.06 of its potential returns per unit of risk. The Ford Motor Company is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 956.00 in Ford Motor Company on September 23, 2019 and sell it today you would lose (49.00) from holding Ford Motor Company or give up 5.13% of portfolio value over 30 days.
Pair Corralation between Exxon and Ford Motor
|Time Period||3 Months [change]|
Diversification Opportunities for Exxon and Ford Motor
Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp. and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor 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 Corporation are associated (or correlated) with Ford Motor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of Exxon i.e. Exxon and Ford Motor go up and down completely randomly.
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