Correlation Between BioNTech and Honeywell International
Specify exactly 2 symbols:
By analyzing existing cross correlation between BioNTech SE and Honeywell International, you can compare the effects of market volatilities on BioNTech and Honeywell International 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 BioNTech with a short position of Honeywell International. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Honeywell International.
Diversification Opportunities for BioNTech and Honeywell International
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BioNTech and Honeywell is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Honeywell International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Honeywell International and BioNTech 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 BioNTech SE are associated (or correlated) with Honeywell International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Honeywell International has no effect on the direction of BioNTech i.e., BioNTech and Honeywell International go up and down completely randomly.
Pair Corralation between BioNTech and Honeywell International
Assuming the 90 days trading horizon BioNTech is expected to generate 1.43 times less return on investment than Honeywell International. In addition to that, BioNTech is 2.65 times more volatile than Honeywell International. It trades about 0.12 of its total potential returns per unit of risk. Honeywell International is currently generating about 0.46 per unit of volatility. If you would invest 18,751 in Honeywell International on September 1, 2024 and sell it today you would earn a total of 3,219 from holding Honeywell International or generate 17.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Honeywell International
Performance |
| Timeline |
| BioNTech SE |
| Honeywell International |
BioNTech and Honeywell International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Honeywell International
The main advantage of trading using opposite BioNTech and Honeywell International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Honeywell International 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 Honeywell International will offset losses from the drop in Honeywell International's long position.| BioNTech vs. COSMOSTEEL HLDGS | BioNTech vs. LEGACY IRON ORE | BioNTech vs. Reliance Steel Aluminum | BioNTech vs. MITSUBISHI STEEL MFG |
| Honeywell International vs. Ming Le Sports | Honeywell International vs. Fukuyama Transporting Co | Honeywell International vs. Big 5 Sporting | Honeywell International vs. COLUMBIA SPORTSWEAR |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |