Correlation Between Johnson Controls and Addentax Group

Can any of the company-specific risk be diversified away by investing in both Johnson Controls and Addentax Group 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 Addentax Group 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 Addentax Group Corp, you can compare the effects of market volatilities on Johnson Controls and Addentax Group 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 Addentax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Controls and Addentax Group.

Diversification Opportunities for Johnson Controls and Addentax Group

0.52

Correlation Coefficient

Johnson Controls  Addentax Group

Very weak diversification

The 3 months correlation between Johnson and Addentax is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Controls International and Addentax Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addentax Group Corp 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 Addentax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addentax Group Corp has no effect on the direction of Johnson Controls i.e., Johnson Controls and Addentax Group go up and down completely randomly.

Pair Corralation between Johnson Controls and Addentax Group

Considering the 90-day investment horizon Johnson Controls is expected to generate 4.02 times less return on investment than Addentax Group. But when comparing it to its historical volatility, Johnson Controls International is 6.31 times less risky than Addentax Group. It trades about 0.13 of its potential returns per unit of risk. Addentax Group Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  55.00  in Addentax Group Corp on July 29, 2025 and sell it today you would earn a total of  13.00  from holding Addentax Group Corp or generate 23.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Johnson Controls International  vs.  Addentax Group Corp

Johnson Controls Int

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Johnson Controls International are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, Johnson Controls may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Addentax Group Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Addentax Group Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Addentax Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Johnson Controls and Addentax Group

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

The idea behind Johnson Controls International and Addentax Group Corp 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 Commodity Directory module to find actively traded commodities issued by global exchanges.