Correlation Between DATALOGIC and Textron

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

By analyzing existing cross correlation between DATALOGIC and Textron, you can compare the effects of market volatilities on DATALOGIC and Textron 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 DATALOGIC with a short position of Textron. Check out your portfolio center. Please also check ongoing floating volatility patterns of DATALOGIC and Textron.

Diversification Opportunities for DATALOGIC and Textron

0.79

Correlation Coefficient

DATALOGIC  Textron

Poor diversification

The 3 months correlation between DATALOGIC and Textron is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding DATALOGIC and Textron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Textron and DATALOGIC 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 DATALOGIC are associated (or correlated) with Textron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Textron has no effect on the direction of DATALOGIC i.e., DATALOGIC and Textron go up and down completely randomly.

Pair Corralation between DATALOGIC and Textron

Assuming the 90 days trading horizon DATALOGIC is expected to generate 1.87 times less return on investment than Textron. In addition to that, DATALOGIC is 1.09 times more volatile than Textron. It trades about 0.11 of its total potential returns per unit of risk. Textron is currently generating about 0.22 per unit of volatility. If you would invest  5,878  in Textron on April 23, 2025 and sell it today you would earn a total of  1,422  from holding Textron or generate 24.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

DATALOGIC  vs.  Textron

DATALOGIC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DATALOGIC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, DATALOGIC may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Textron

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Textron are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Textron reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DATALOGIC and Textron

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

The idea behind DATALOGIC and Textron 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.