Correlation Analysis Between Exxon and Ford Motor

This module allows you to analyze 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. See also your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Ford Motor.
Horizon     30 Days    Login   to change
Symbolsvs
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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 new stock price chaos, may contribute to medium term losses for the stakeholders.
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.

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 generate 0.76 times more return on investment than Ford Motor. However, Exxon Mobil Corporation is 1.31 times less risky than Ford Motor. It trades about -0.02 of its potential returns per unit of risk. Ford Motor Company is currently generating about -0.06 per unit of risk. If you would invest  7,474  in Exxon Mobil Corporation on August 19, 2019 and sell it today you would lose (157.00)  from holding Exxon Mobil Corporation or give up 2.1% of portfolio value over 30 days.

Pair Corralation between Exxon and Ford Motor

0.89
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Exxon and Ford Motor

Exxon Mobil Corp. diversification synergy

Very 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.
See also your portfolio center. Please also try Pattern Recognition module to use different pattern recognition models to time the market across multiple global exchanges.


 
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