Correlation Between BORGWARNER and Philip Morris
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By analyzing existing cross correlation between BORGWARNER INC 3375 and Philip Morris International, you can compare the effects of market volatilities on BORGWARNER and Philip Morris 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 BORGWARNER with a short position of Philip Morris. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORGWARNER and Philip Morris.
Diversification Opportunities for BORGWARNER and Philip Morris
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BORGWARNER and Philip is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding BORGWARNER INC 3375 and Philip Morris International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philip Morris Intern and BORGWARNER 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 BORGWARNER INC 3375 are associated (or correlated) with Philip Morris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philip Morris Intern has no effect on the direction of BORGWARNER i.e., BORGWARNER and Philip Morris go up and down completely randomly.
Pair Corralation between BORGWARNER and Philip Morris
Assuming the 90 days trading horizon BORGWARNER INC 3375 is expected to under-perform the Philip Morris. But the bond apears to be less risky and, when comparing its historical volatility, BORGWARNER INC 3375 is 2.53 times less risky than Philip Morris. The bond trades about -0.02 of its potential returns per unit of risk. The Philip Morris International is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 8,831 in Philip Morris International on September 4, 2024 and sell it today you would earn a total of 4,271 from holding Philip Morris International or generate 48.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 67.21% |
| Values | Daily Returns |
BORGWARNER INC 3375 vs. Philip Morris International
Performance |
| Timeline |
| BORGWARNER INC 3375 |
| Philip Morris Intern |
BORGWARNER and Philip Morris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORGWARNER and Philip Morris
The main advantage of trading using opposite BORGWARNER and Philip Morris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORGWARNER position performs unexpectedly, Philip Morris 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 Philip Morris will offset losses from the drop in Philip Morris' long position.| BORGWARNER vs. Tesla Inc | BORGWARNER vs. Hudson Pacific Properties | BORGWARNER vs. Anterix | BORGWARNER vs. BCE Inc |
| Philip Morris vs. British American Tobacco | Philip Morris vs. Universal | Philip Morris vs. Imperial Brands PLC | Philip Morris vs. Altria Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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