Correlation Between Aptiv PLC and 302635AH0

Can any of the company-specific risk be diversified away by investing in both Aptiv PLC and 302635AH0 at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aptiv PLC and 302635AH0 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aptiv PLC and FSK 2625 15 JAN 27, you can compare the effects of market volatilities on Aptiv PLC and 302635AH0 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 Aptiv PLC with a short position of 302635AH0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptiv PLC and 302635AH0.

Diversification Opportunities for Aptiv PLC and 302635AH0

0.0

Correlation Coefficient

Aptiv PLC  302635AH0

Pay attention - limited upside

The 3 months correlation between Aptiv and 302635AH0 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aptiv PLC and FSK 2625 15 JAN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSK 2625 15 and Aptiv PLC 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 Aptiv PLC are associated (or correlated) with 302635AH0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSK 2625 15 has no effect on the direction of Aptiv PLC i.e., Aptiv PLC and 302635AH0 go up and down completely randomly.

Pair Corralation between Aptiv PLC and 302635AH0

Given the investment horizon of 90 days Aptiv PLC is expected to generate 0.75 times more return on investment than 302635AH0. However, Aptiv PLC is 1.32 times less risky than 302635AH0. It trades about 0.1 of its potential returns per unit of risk. FSK 2625 15 JAN 27 is currently generating about -0.24 per unit of risk. If you would invest  5,800  in Aptiv PLC on October 15, 2024 and sell it today you would earn a total of  135.00  from holding Aptiv PLC or generate 2.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	94.44%
Values	Daily Returns

Aptiv PLC  vs.  FSK 2625 15 JAN 27

Aptiv PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aptiv PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

FSK 2625 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FSK 2625 15 JAN 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for FSK 2625 15 JAN 27 investors.

Pair Trading with Aptiv PLC and 302635AH0

The main advantage of trading using opposite Aptiv PLC and 302635AH0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptiv PLC position performs unexpectedly, 302635AH0 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 302635AH0 will offset losses from the drop in 302635AH0's long position.

The idea behind Aptiv PLC and FSK 2625 15 JAN 27 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.