Correlation Analysis Between Merck and JP Morgan

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

Comparative Performance


Risk-Adjusted Performance

Over the last 30 days Merck Company has generated negative risk-adjusted returns adding no value to investors with long positions. Regardless of fairly consistent technical and fundamental indicators, Merck is not utilizing all of its potentials. The existing stock price confusion, may contribute to short-horizon losses for the traders.
JP Morgan Chase  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in JP Morgan Chase Co are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Even with considerably sluggish technical indicators, JP Morgan may actually be approaching a critical reversion point that can send shares even higher in October 2019.

Merck and JP Morgan Volatility Contrast

 Predicted Return Density 

Merck Company Inc  vs.  JP Morgan Chase Co

 Performance (%) 

Pair Volatility

Considering 30-days investment horizon, Merck is expected to generate 29.03 times less return on investment than JP Morgan. But when comparing it to its historical volatility, Merck Company is 1.08 times less risky than JP Morgan. It trades about 0.0 of its potential returns per unit of risk. JP Morgan Chase Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  10,789  in JP Morgan Chase Co on August 21, 2019 and sell it today you would earn a total of  1,219  from holding JP Morgan Chase Co or generate 11.3% return on investment over 30 days.

Pair Corralation between Merck and JP Morgan

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Merck and JP Morgan

Merck Company Inc diversification synergy

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding Merck Company Inc 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 Merck 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 Merck 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 Merck i.e. Merck and JP Morgan go up and down completely randomly.
See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.