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Correlation Between Exxon and Ford Motor

Analyzing 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Ford Motor.
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Comparative Performance

Exxon Mobil  
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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.
Ford Motor  
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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 latest sluggish performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Exxon and Ford Motor Volatility Contrast

 Predicted Return Density 
    
  Returns 

Exxon Mobil Corp.  vs.  Ford Motor Company

 Performance (%) 
    
  Timeline 

Pair Volatility

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 1.21 times less risky than Ford Motor. The stock trades about -0.14 of its potential returns per unit of risk. The Ford Motor Company is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  873.00  in Ford Motor Company on January 19, 2020 and sell it today you would lose (63.00)  from holding Ford Motor Company or give up 7.22% of portfolio value over 30 days.

Pair Corralation between Exxon and Ford Motor

0.78
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Exxon and Ford Motor

Exxon Mobil Corp. diversification synergy

Poor diversification

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.
Check out your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.