Correlation Between 456837AV5 and Aptiv PLC

Can any of the company-specific risk be diversified away by investing in both 456837AV5 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 456837AV5 and Aptiv PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ING GROEP NV and Aptiv PLC, you can compare the effects of market volatilities on 456837AV5 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 456837AV5 with a short position of Aptiv PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of 456837AV5 and Aptiv PLC.

Diversification Opportunities for 456837AV5 and Aptiv PLC

0.0

Correlation Coefficient

456837AV5  Aptiv PLC

Pay attention - limited upside

The 3 months correlation between 456837AV5 and Aptiv is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ING GROEP NV and Aptiv PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptiv PLC and 456837AV5 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 ING GROEP NV 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 456837AV5 i.e., 456837AV5 and Aptiv PLC go up and down completely randomly.

Pair Corralation between 456837AV5 and Aptiv PLC

If you would invest  5,740  in Aptiv PLC on October 8, 2024 and sell it today you would earn a total of  398.00  from holding Aptiv PLC or generate 6.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

ING GROEP NV  vs.  Aptiv PLC

ING GROEP NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ING GROEP NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 456837AV5 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the 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 latest unfluctuating performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with 456837AV5 and Aptiv PLC

The main advantage of trading using opposite 456837AV5 and Aptiv PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 456837AV5 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 ING GROEP NV 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 CEOs Directory module to screen CEOs from public companies around the world.