Correlation Between Philip Morris and TEXTRON
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By analyzing existing cross correlation between Philip Morris International and TEXTRON INC 4, you can compare the effects of market volatilities on Philip Morris 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 Philip Morris with a short position of TEXTRON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philip Morris and TEXTRON.
Diversification Opportunities for Philip Morris and TEXTRON
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Philip and TEXTRON is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Philip Morris International 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 Philip Morris 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 Philip Morris International 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 Philip Morris i.e., Philip Morris and TEXTRON go up and down completely randomly.
Pair Corralation between Philip Morris and TEXTRON
Allowing for the 90-day total investment horizon Philip Morris International is expected to under-perform the TEXTRON. In addition to that, Philip Morris is 11.28 times more volatile than TEXTRON INC 4. It trades about -0.01 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 Against |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Philip Morris International vs. TEXTRON INC 4
Performance |
| Timeline |
| Philip Morris Intern |
| TEXTRON INC 4 |
Philip Morris and TEXTRON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philip Morris and TEXTRON
The main advantage of trading using opposite Philip Morris and TEXTRON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philip Morris 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.| Philip Morris vs. British American Tobacco | Philip Morris vs. Universal | Philip Morris vs. Imperial Brands PLC | Philip Morris vs. Altria Group |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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