Correlation Between Aptiv PLC and TEXTRON
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By analyzing existing cross correlation between Aptiv PLC and TEXTRON INC 4, you can compare the effects of market volatilities on Aptiv PLC and TEXTRON 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 Aptiv PLC with a short position of TEXTRON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptiv PLC and TEXTRON.
Diversification Opportunities for Aptiv PLC and TEXTRON
Very weak diversification
The 3 months correlation between Aptiv and TEXTRON is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aptiv PLC and TEXTRON INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEXTRON INC 4 and Aptiv 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 Aptiv PLC are associated (or correlated) with TEXTRON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEXTRON INC 4 has no effect on the direction of Aptiv PLC i.e., Aptiv PLC and TEXTRON go up and down completely randomly.
Pair Corralation between Aptiv PLC and TEXTRON
Given the investment horizon of 90 days Aptiv PLC is expected to generate 2.53 times less return on investment than TEXTRON. In addition to that, Aptiv PLC is 13.62 times more volatile than TEXTRON INC 4. It trades about 0.0 of its total potential returns per unit of risk. TEXTRON INC 4 is currently generating about 0.03 per unit of volatility. If you would invest 9,893 in TEXTRON INC 4 on September 5, 2024 and sell it today you would earn a total of 7.00 from holding TEXTRON INC 4 or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Aptiv PLC vs. TEXTRON INC 4
Performance |
| Timeline |
| Aptiv PLC |
| TEXTRON INC 4 |
Aptiv PLC and TEXTRON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aptiv PLC and TEXTRON
The main advantage of trading using opposite Aptiv PLC and TEXTRON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptiv PLC position performs unexpectedly, TEXTRON 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 TEXTRON will offset losses from the drop in TEXTRON's long position.| Aptiv PLC vs. Allison Transmission Holdings | Aptiv PLC vs. LKQ Corporation | Aptiv PLC vs. Lear Corporation | Aptiv PLC vs. Magna International |
| TEXTRON vs. CarsalesCom Ltd ADR | TEXTRON vs. Microbot Medical | TEXTRON vs. Skechers USA | TEXTRON vs. Aptiv PLC |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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