Macroaxis: Personalized Investing

Personalized Investing and

Digital Wealth Optimization

Benchmark  United States  NYSE  11,193   1.45  0.01% 


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Collecting data for LEA and JCI ...

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 is expected to generate 1.65 times less return on investment than Johnson. But when comparing it to its historical volatility, Lear Corp is 1.45 times less risky than Johnson. It trades about 0.24 of its potential returns per unit of risk. Johnson Controls Inc is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  4,983  in Johnson Controls Inc on March 28, 2015 and sell it today you would earn a total of  265.00  from holding Johnson Controls Inc or generate 5.32% return on investment over 30 days.

Correlation Coefficient

-0.01

Parameters

Time Period1 Month [change]
DirectionNegative LEA Moved Down vs JCI
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good 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

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

Pair trading matchups for Lear

Johnson Controls Inc vs. Lear Corp
Gentex Corp vs. Lear Corp
  

Johnson Controls

  
Compared with the overall equity markets, risk-adjusted returns on investments in Johnson Controls Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for Johnson

Lear Corp vs. Johnson Controls Inc
Gentex Corp vs. Johnson Controls Inc