Benchmark  United States  NYSE  11,198   41.9775  -0.3735% 


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Correlation analysis between Lear and Johnson  

    
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 and Johnson 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 with a short position of Johnson. Please also check ongoing floating volatility patterns of Lear and Johnson.
 Lear Corp.  vs   Johnson Controls Inc.
Daily Returns (%)
LEA   JCI   
Benchmark  Embed   Timeline 
Considering 30-days investment horizon, Lear Corp is expected to generate 0.87 times more return on investment than Johnson. However, Lear Corp is 1.15 times less risky than Johnson. It trades about 0.12 of its potential returns per unit of risk. Johnson Controls Inc is currently generating about -0.13 per unit of risk. If you would invest  11,508  in Lear Corp on April 24, 2015 and sell it today you would earn a total of  213.00  from holding Lear Corp or generate 1.85% return on investment over 30 days.

Correlation Coefficient

0.62

Parameters

Time Period1 Month [change]
DirectionPositive JCI Moved Up vs LEA
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor 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

Compared to the overall equity markets, risk-adjusted returns on investments in Lear Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for Lear

Johnson Controls Inc vs. Lear Corp
BorgWarner Inc vs. Lear Corp
TRW Automotive Holdings Corp vs. Lear Corp
Autoliv Inc vs. Lear Corp
WABCO Holdings Inc vs. Lear Corp
Gentex Corp vs. Lear Corp
Visteon Corporation vs. Lear Corp
Tenneco Inc vs. Lear Corp
Dana Holding Corporation vs. 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

BorgWarner Inc vs. Johnson Controls Inc
TRW Automotive Holdings Corp vs. Johnson Controls Inc
Autoliv Inc vs. Johnson Controls Inc
Lear Corp vs. Johnson Controls Inc
WABCO Holdings Inc vs. Johnson Controls Inc
Gentex Corp vs. Johnson Controls Inc
Visteon Corporation vs. Johnson Controls Inc
Tenneco Inc vs. Johnson Controls Inc
Dana Holding Corporation vs. Johnson Controls Inc