Correlation Between Adient PLC and STCITY
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By analyzing existing cross correlation between Adient PLC and STCITY 65 15 JAN 28, you can compare the effects of market volatilities on Adient PLC and STCITY 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 Adient PLC with a short position of STCITY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adient PLC and STCITY.
Diversification Opportunities for Adient PLC and STCITY
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Adient and STCITY is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Adient PLC and STCITY 65 15 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STCITY 65 15 and Adient PLC 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 Adient PLC are associated (or correlated) with STCITY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STCITY 65 15 has no effect on the direction of Adient PLC i.e., Adient PLC and STCITY go up and down completely randomly.
Pair Corralation between Adient PLC and STCITY
Given the investment horizon of 90 days Adient PLC is expected to generate 2.24 times more return on investment than STCITY. However, Adient PLC is 2.24 times more volatile than STCITY 65 15 JAN 28. It trades about -0.05 of its potential returns per unit of risk. STCITY 65 15 JAN 28 is currently generating about -0.24 per unit of risk. If you would invest 1,974 in Adient PLC on September 3, 2024 and sell it today you would lose (51.00) from holding Adient PLC or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 45.0% |
| Values | Daily Returns |
Adient PLC vs. STCITY 65 15 JAN 28
Performance |
| Timeline |
| Adient PLC |
| STCITY 65 15 |
Adient PLC and STCITY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adient PLC and STCITY
The main advantage of trading using opposite Adient PLC and STCITY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adient PLC position performs unexpectedly, STCITY 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 STCITY will offset losses from the drop in STCITY's long position.| Adient PLC vs. Allison Transmission Holdings | Adient PLC vs. Aptiv PLC | Adient PLC vs. LKQ Corporation | Adient PLC vs. Lear Corporation |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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