Pair Correlation Between Lear Corp and Johnson Controls

  
Investment Horizon     30 Days    Login   to change
This module allows you to analyze existing cross correlation between Lear Corp and Johnson Controls Inc. You can compare the effects of market volatilities on Lear Corp and Johnson Controls 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 Lear Corp with a short position of Johnson Controls. Please also check ongoing floating volatility patterns of Lear Corp and Johnson Controls.
 Lear Corp.  vs   Johnson Controls Inc.
Daily Returns (%)
LEA   JCI   
Benchmark  Embed   Timeline 
Considering 30-days investment horizon, Lear Corp is expected to under-perform the Johnson Controls. In addition to that, Lear Corp is 1.02 times more volatile than Johnson Controls Inc. It trades about -0.19 of its total potential returns per unit of risk. Johnson Controls Inc is currently generating about 0.01 per unit of volatility. If you would invest  3,466  in Johnson Controls Inc on January 13, 2016 and sell it today you would earn a total of  4.00  from holding Johnson Controls Inc or generate 0.12% return on investment over 30 days.

Correlation Coefficient

0.24

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns
  

Diversification

Modest diversification

Overlapping area represents amount of risk that can be diversified away by holding Lear Corp. and Johnson Controls Inc. in the same portfolio assuming nothing else is changed

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 

Lear Corp

  

Risk-adjusted Performance

Over the last 30 days Lear Corp has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for Lear Corp

  

Johnson Controls

  

Risk-adjusted Performance

Over the last 30 days Johnson Controls Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for Johnson Controls