Correlation Between Bank of America and HONEYWELL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bank of America and HONEYWELL INTERNATIONAL INC, you can compare the effects of market volatilities on Bank of America and HONEYWELL 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 Bank of America with a short position of HONEYWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of America and HONEYWELL.
Diversification Opportunities for Bank of America and HONEYWELL
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and HONEYWELL is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank of America and HONEYWELL INTERNATIONAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HONEYWELL INTERNATIONAL and Bank of America 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 Bank of America are associated (or correlated) with HONEYWELL. 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 Bank of America i.e., Bank of America and HONEYWELL go up and down completely randomly.
Pair Corralation between Bank of America and HONEYWELL
Considering the 90-day investment horizon Bank of America is expected to generate 2.26 times more return on investment than HONEYWELL. However, Bank of America is 2.26 times more volatile than HONEYWELL INTERNATIONAL INC. It trades about 0.26 of its potential returns per unit of risk. HONEYWELL INTERNATIONAL INC is currently generating about -0.2 per unit of risk. If you would invest 4,262 in Bank of America on August 28, 2024 and sell it today you would earn a total of 488.00 from holding Bank of America or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of America vs. HONEYWELL INTERNATIONAL INC
Performance |
| Timeline |
| Bank of America |
| HONEYWELL INTERNATIONAL |
Bank of America and HONEYWELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of America and HONEYWELL
The main advantage of trading using opposite Bank of America and HONEYWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of America position performs unexpectedly, HONEYWELL 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 will offset losses from the drop in HONEYWELL's long position.| Bank of America vs. Nu Holdings | Bank of America vs. HSBC Holdings PLC | Bank of America vs. Bank of Nova |
| HONEYWELL vs. The Coca Cola | HONEYWELL vs. JPMorgan Chase Co | HONEYWELL vs. Dupont De Nemours | HONEYWELL vs. Alcoa Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |