Correlation Between Fortive Corp and Leidos Holdings
Can any of the company-specific risk be diversified away by investing in both Fortive Corp and Leidos Holdings 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 Fortive Corp and Leidos Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortive Corp and Leidos Holdings, you can compare the effects of market volatilities on Fortive Corp and Leidos Holdings 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 Fortive Corp with a short position of Leidos Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortive Corp and Leidos Holdings.
Diversification Opportunities for Fortive Corp and Leidos Holdings
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortive and Leidos is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Fortive Corp and Leidos Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leidos Holdings and Fortive Corp 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 Fortive Corp are associated (or correlated) with Leidos Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leidos Holdings has no effect on the direction of Fortive Corp i.e., Fortive Corp and Leidos Holdings go up and down completely randomly.
Pair Corralation between Fortive Corp and Leidos Holdings
Considering the 90-day investment horizon Fortive Corp is expected to generate 0.82 times more return on investment than Leidos Holdings. However, Fortive Corp is 1.22 times less risky than Leidos Holdings. It trades about 0.16 of its potential returns per unit of risk. Leidos Holdings is currently generating about -0.07 per unit of risk. If you would invest 4,955 in Fortive Corp on October 7, 2025 and sell it today you would earn a total of 584.00 from holding Fortive Corp or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortive Corp vs. Leidos Holdings
Performance |
| Timeline |
| Fortive Corp |
| Leidos Holdings |
Fortive Corp and Leidos Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortive Corp and Leidos Holdings
The main advantage of trading using opposite Fortive Corp and Leidos Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortive Corp position performs unexpectedly, Leidos Holdings 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 Leidos Holdings will offset losses from the drop in Leidos Holdings' long position.| Fortive Corp vs. Trimble | Fortive Corp vs. Gen Digital | Fortive Corp vs. Corpay Inc | Fortive Corp vs. Gartner |
| Leidos Holdings vs. Wipro Limited ADR | Leidos Holdings vs. Broadridge Financial Solutions | Leidos Holdings vs. CDW Corp | Leidos Holdings vs. CGI Inc |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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