Correlation Analysis Between JP Morgan and Merck

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

JP Morgan Chase  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in JP Morgan Chase Co are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Even with considerably steady technical indicators, JP Morgan is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.
Merck  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Merck Company are ranked lower than 2 (%) 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 current stock price confusion, may contribute to short-horizon losses for the traders.

JP Morgan and Merck Volatility Contrast

 Predicted Return Density 
      Returns 

JP Morgan Chase Co  vs.  Merck Company Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, JP Morgan Chase Co is expected to generate 1.25 times more return on investment than Merck. However, JP Morgan is 1.25 times more volatile than Merck Company. It trades about 0.05 of its potential returns per unit of risk. Merck Company is currently generating about 0.03 per unit of risk. If you would invest  11,467  in JP Morgan Chase Co on September 16, 2019 and sell it today you would earn a total of  501.00  from holding JP Morgan Chase Co or generate 4.37% return on investment over 30 days.

Pair Corralation between JP Morgan and Merck

-0.54
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for JP Morgan and Merck

JP Morgan Chase Co diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding JP Morgan Chase Co and Merck Company Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Merck and JP Morgan 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 JP Morgan Chase Co are associated (or correlated) with Merck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merck has no effect on the direction of JP Morgan i.e. JP Morgan and Merck go up and down completely randomly.
See also your portfolio center. Please also try Bollinger Bands module to use bollinger bands indicator to analyze target price for a given investing horizon.


 
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