Correlation Between Johnson Controls and Intelligent Living
Can any of the company-specific risk be diversified away by investing in both Johnson Controls and Intelligent Living 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 Johnson Controls and Intelligent Living into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Controls International and Intelligent Living Application, you can compare the effects of market volatilities on Johnson Controls and Intelligent Living 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 Johnson Controls with a short position of Intelligent Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Controls and Intelligent Living.
Diversification Opportunities for Johnson Controls and Intelligent Living
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Johnson and Intelligent is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Controls International and Intelligent Living Application in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Living and Johnson Controls 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 Johnson Controls International are associated (or correlated) with Intelligent Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Living has no effect on the direction of Johnson Controls i.e., Johnson Controls and Intelligent Living go up and down completely randomly.
Pair Corralation between Johnson Controls and Intelligent Living
Considering the 90-day investment horizon Johnson Controls International is expected to generate 0.37 times more return on investment than Intelligent Living. However, Johnson Controls International is 2.71 times less risky than Intelligent Living. It trades about 0.17 of its potential returns per unit of risk. Intelligent Living Application is currently generating about -0.2 per unit of risk. If you would invest 7,800 in Johnson Controls International on December 2, 2024 and sell it today you would earn a total of 766.00 from holding Johnson Controls International or generate 9.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Johnson Controls International vs. Intelligent Living Application
Performance |
Timeline |
Johnson Controls Int |
Intelligent Living |
Johnson Controls and Intelligent Living Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Johnson Controls and Intelligent Living
The main advantage of trading using opposite Johnson Controls and Intelligent Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Controls position performs unexpectedly, Intelligent Living 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 Intelligent Living will offset losses from the drop in Intelligent Living's long position.Johnson Controls vs. Carrier Global Corp | Johnson Controls vs. Lennox International | Johnson Controls vs. Masco | Johnson Controls vs. Carlisle Companies Incorporated |
Intelligent Living vs. Azek Company | Intelligent Living vs. Atlas Engineered Products | Intelligent Living vs. Antelope Enterprise Holdings | Intelligent Living vs. Latham Group |
Check out your portfolio center.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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
CEOs Directory Screen CEOs from public companies around the world | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |