Correlation Analysis Between Exxon and JP Morgan

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

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.
JP Morgan Chase  
55

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in JP Morgan Chase Co are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, JP Morgan may actually be approaching a critical reversion point that can send shares even higher in November 2019.

Exxon and JP Morgan Volatility Contrast

 Predicted Return Density 
      Returns 

Exxon Mobil Corp.  vs.  JP Morgan Chase Co

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Exxon Mobil Corporation is expected to under-perform the JP Morgan. But the stock apears to be less risky and, when comparing its historical volatility, Exxon Mobil Corporation is 1.14 times less risky than JP Morgan. The stock trades about -0.05 of its potential returns per unit of risk. The JP Morgan Chase Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  11,571  in JP Morgan Chase Co on September 23, 2019 and sell it today you would earn a total of  941.00  from holding JP Morgan Chase Co or generate 8.13% return on investment over 30 days.

Pair Corralation between Exxon and JP Morgan

0.48
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Exxon and JP Morgan

Exxon Mobil Corp. diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp. and JP Morgan Chase Co in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Chase 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 JP Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JP Morgan Chase has no effect on the direction of Exxon i.e. Exxon and JP Morgan go up and down completely randomly.
See also your portfolio center. Please also try Pair Correlation module to compare performance and examine historical correlation between any two equity instruments.


 
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