Correlation Between JPMorgan Chase and Exxon

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both JPMorgan Chase and Exxon at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JPMorgan Chase and Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPMorgan Chase Co and Exxon Mobil Corp, you can compare the effects of market volatilities on JPMorgan Chase and Exxon 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 JPMorgan Chase with a short position of Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPMorgan Chase and Exxon.

Diversification Opportunities for JPMorgan Chase and Exxon

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between JPMorgan and Exxon is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding JPMorgan Chase Co and Exxon Mobil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxon Mobil Corp and JPMorgan Chase 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 JPMorgan Chase Co are associated (or correlated) with Exxon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxon Mobil Corp has no effect on the direction of JPMorgan Chase i.e., JPMorgan Chase and Exxon go up and down completely randomly.

Pair Corralation between JPMorgan Chase and Exxon

Considering the 90-day investment horizon JPMorgan Chase is expected to generate 1.3 times less return on investment than Exxon. In addition to that, JPMorgan Chase is 1.21 times more volatile than Exxon Mobil Corp. It trades about 0.41 of its total potential returns per unit of risk. Exxon Mobil Corp is currently generating about 0.64 per unit of volatility. If you would invest  10,432  in Exxon Mobil Corp on December 30, 2023 and sell it today you would earn a total of  1,192  from holding Exxon Mobil Corp or generate 11.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

JPMorgan Chase Co  vs.  Exxon Mobil Corp

 Performance 
       Timeline  
JPMorgan Chase 

Risk-Adjusted Performance

24 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, JPMorgan Chase displayed solid returns over the last few months and may actually be approaching a breakup point.
Exxon Mobil Corp 

Risk-Adjusted Performance

16 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Exxon Mobil Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Exxon displayed solid returns over the last few months and may actually be approaching a breakup point.

JPMorgan Chase and Exxon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JPMorgan Chase and Exxon

The main advantage of trading using opposite JPMorgan Chase and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase position performs unexpectedly, Exxon can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Exxon will offset losses from the drop in Exxon's long position.
The idea behind JPMorgan Chase Co and Exxon Mobil Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Other Complementary Tools

Fundamental Analysis
View fundamental data based on most recent published financial statements
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Technical Analysis
Check basic technical indicators and analysis based on most latest market data