Textron Correlations

TXT Stock

MXN 1,655 0.00 0.00%

The current 90-days correlation between Textron and NOV Inc is -0.01 (i.e., Good diversification). The correlation of Textron is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Textron Correlation With Market

Good diversification

The correlation between Textron and DJI is -0.07 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Textron and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Textron could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Textron when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Textron - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Textron to buy it.

Moving against Textron Stock

0.5	BA	Boeing	Pair Corr
0.48	PRU	Prudential Financial	Pair Corr
0.38	PINFRAL	Promotora y Operadora	Pair Corr
0.32	PG	Procter Gamble DRC	Pair Corr
0.31	WMT	Walmart	Pair Corr
0.53	IBM	International Business	Pair Corr
0.38	AIG	American International	Pair Corr
0.32	NOV	NOV Inc	Pair Corr

Related Correlations Analysis

	BA	GD	TXT	NOV	MAS	BLK	SPORTS	ALFAA	BOLSAA
BA		-0.72	-0.5	0.8	0.43	0.41	0.43	0.21	0.55	BA
GD	-0.72		0.39	-0.8	-0.52	-0.19	-0.11	-0.28	-0.41	GD
TXT	-0.5	0.39		-0.32	-0.07	-0.1	-0.09	0.14	-0.18	TXT
NOV	0.8	-0.8	-0.32		0.46	0.37	0.34	0.25	0.71	NOV
MAS	0.43	-0.52	-0.07	0.46		0.75	0.74	0.57	0.3	MAS
BLK	0.41	-0.19	-0.1	0.37	0.75		0.92	0.59	0.43	BLK
SPORTS	0.43	-0.11	-0.09	0.34	0.74	0.92		0.46	0.34	SPORTS
ALFAA	0.21	-0.28	0.14	0.25	0.57	0.59	0.46		0.18	ALFAA
BOLSAA	0.55	-0.41	-0.18	0.71	0.3	0.43	0.34	0.18		BOLSAA
	BA	GD	TXT	NOV	MAS	BLK	SPORTS	ALFAA	BOLSAA

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

SPORTS	+ 0.92	BLK
NOV	+ 0.8	BA
BLK	+ 0.75	MAS
SPORTS	+ 0.74	MAS
BOLSAA	+ 0.71	NOV
ALFAA	+ 0.59	BLK

High negative correlations

NOV	- 0.8	GD
GD	- 0.72	BA
MAS	- 0.52	GD
TXT	- 0.5	BA
BOLSAA	- 0.41	GD
NOV	- 0.32	TXT

Risk-Adjusted Indicators

There is a big difference between Textron Stock performing well and Textron Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Textron's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
BA	1.64	0.31	0.14	(0.67)	1.73	(1.84)	4.06	(3.21)	8.46
GD	0.41	(0.15)	0.00	1.00	0.00	0.00	0.00	(1.27)	8.51
TXT	0.42	0.07	0.00	(0.50)	0.00	0.00	0.00	0.00	14.67
NOV	0.01	0.00	0.00	0.64	0.00	0.00	0.00	0.00	0.47
MAS	0.02	0.00	0.00	0.20	0.00	0.00	0.00	0.00	0.51
BLK	1.13	0.33	0.20	2.11	0.78	(2.02)	2.41	(2.29)	11.50
SPORTS	0.97	0.29	0.10	(2.10)	1.35	(1.41)	3.23	(1.68)	12.22
ALFAA	1.78	0.26	0.13	0.90	1.66	(2.22)	4.10	(3.79)	12.68
BOLSAA	1.36	0.12	0.05	1.49	1.70	(1.48)	4.05	(2.83)	11.26

Be your own money manager

Our tools can tell you how much better you can do entering a position in Textron without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Textron Corporate Management

Elected by the shareholders, the Textron's board of directors comprises two types of representatives: Textron inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Textron. The board's role is to monitor Textron's management team and ensure that shareholders' interests are well served. Textron's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Textron's outside directors are responsible for providing unbiased perspectives on the board's policies.

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