Pair Correlation Between Lear and Johnson Controls

This module allows you to analyze existing cross correlation between Lear Corporation and Johnson Controls International plc. You can compare the effects of market volatilities on Lear 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 with a short position of Johnson Controls. See also your portfolio center. Please also check ongoing floating volatility patterns of Lear and Johnson Controls.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Lear Corp.  vs   Johnson Controls International
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Lear is expected to generate 1.33 times less return on investment than Johnson Controls. But when comparing it to its historical volatility, Lear Corporation is 1.58 times less risky than Johnson Controls. It trades about 0.27 of its potential returns per unit of risk. Johnson Controls International plc is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  3,975  in Johnson Controls International plc on September 20, 2017 and sell it today you would earn a total of  218  from holding Johnson Controls International plc or generate 5.48% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Lear and Johnson Controls
0.38

Parameters

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

Diversification

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Lear Corp. and Johnson Controls International in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Johnson Controls Int and Lear 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 Lear Corporation are associated (or correlated) with Johnson Controls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johnson Controls Int has no effect on the direction of Lear i.e. Lear and Johnson Controls go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Lear

  
18 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Lear Corporation are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.

Johnson Controls Int

  
15 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Johnson Controls International plc are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.