Correlation Analysis Between Ford Motor and JP Morgan

This module allows you to analyze existing cross correlation between Ford Motor Company and JP Morgan Chase Co. You can compare the effects of market volatilities on Ford Motor 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 Ford Motor with a short position of JP Morgan. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and JP Morgan.
Horizon     30 Days    Login   to change
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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 new stock price tumult, may contribute to shorter-term losses for the shareholders.
JP Morgan Chase  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in JP Morgan Chase Co are ranked lower than 6 (%) 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 October 2019.

Ford Motor and JP Morgan Volatility Contrast

 Predicted Return Density 
      Returns 

Ford Motor Company  vs.  JP Morgan Chase Co

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to under-perform the JP Morgan. In addition to that, Ford Motor is 1.09 times more volatile than JP Morgan Chase Co. It trades about -0.06 of its total potential returns per unit of risk. JP Morgan Chase Co is currently generating about 0.1 per unit of volatility. If you would invest  10,941  in JP Morgan Chase Co on August 19, 2019 and sell it today you would earn a total of  916.00  from holding JP Morgan Chase Co or generate 8.37% return on investment over 30 days.

Pair Corralation between Ford Motor and JP Morgan

-0.42
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and JP Morgan

Ford Motor Company diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company 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 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 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 Ford Motor i.e. Ford Motor and JP Morgan go up and down completely randomly.
See also your portfolio center. Please also try Equity Valuation module to check real value of public entities based on technical and fundamental data.


 
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