Correlation Between 302635AH0 and Aptiv PLC

Can any of the company-specific risk be diversified away by investing in both 302635AH0 and Aptiv PLC 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 302635AH0 and Aptiv PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for 302635AH0 and Aptiv PLC

0.13

Correlation Coefficient

302635AH0  Aptiv PLC

Average diversification

The 3 months correlation between 302635AH0 and Aptiv is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding FSK 2625 15 JAN 27 and Aptiv PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptiv PLC and 302635AH0 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 FSK 2625 15 JAN 27 are associated (or correlated) with Aptiv PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptiv PLC has no effect on the direction of 302635AH0 i.e., 302635AH0 and Aptiv PLC go up and down completely randomly.

Pair Corralation between 302635AH0 and Aptiv PLC

Assuming the 90 days trading horizon FSK 2625 15 JAN 27 is expected to generate 0.32 times more return on investment than Aptiv PLC. However, FSK 2625 15 JAN 27 is 3.13 times less risky than Aptiv PLC. It trades about 0.01 of its potential returns per unit of risk. Aptiv PLC is currently generating about -0.05 per unit of risk. If you would invest  8,655  in FSK 2625 15 JAN 27 on September 26, 2024 and sell it today you would earn a total of  175.00  from holding FSK 2625 15 JAN 27 or generate 2.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	85.89%
Values	Daily Returns

FSK 2625 15 JAN 27  vs.  Aptiv PLC

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 abnormal 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.

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 January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with 302635AH0 and Aptiv PLC

The main advantage of trading using opposite 302635AH0 and Aptiv PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 302635AH0 position performs unexpectedly, Aptiv PLC 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 Aptiv PLC will offset losses from the drop in Aptiv PLC's long position.

The idea behind FSK 2625 15 JAN 27 and Aptiv PLC 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.