Correlation Between 1847 Holdings and Honeywell International
Can any of the company-specific risk be diversified away by investing in both 1847 Holdings and Honeywell International 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 1847 Holdings and Honeywell International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1847 Holdings LLC and Honeywell International, you can compare the effects of market volatilities on 1847 Holdings 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 1847 Holdings with a short position of Honeywell International. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1847 Holdings and Honeywell International.
Diversification Opportunities for 1847 Holdings and Honeywell International
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 1847 and Honeywell is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding 1847 Holdings LLC and Honeywell International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Honeywell International and 1847 Holdings 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 1847 Holdings LLC 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 1847 Holdings i.e., 1847 Holdings and Honeywell International go up and down completely randomly.
Pair Corralation between 1847 Holdings and Honeywell International
Given the investment horizon of 90 days 1847 Holdings LLC is expected to generate 41.8 times more return on investment than Honeywell International. However, 1847 Holdings is 41.8 times more volatile than Honeywell International. It trades about 0.01 of its potential returns per unit of risk. Honeywell International is currently generating about 0.02 per unit of risk. If you would invest 116,220 in 1847 Holdings LLC on November 19, 2024 and sell it today you would lose (116,203) from holding 1847 Holdings LLC or give up 99.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
1847 Holdings LLC vs. Honeywell International
Performance |
| Timeline |
| 1847 Holdings LLC |
| Honeywell International |
1847 Holdings and Honeywell International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1847 Holdings and Honeywell International
The main advantage of trading using opposite 1847 Holdings and Honeywell International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1847 Holdings 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.| 1847 Holdings vs. Alliance Recovery | 1847 Holdings vs. Agro Capital Management | 1847 Holdings vs. Ayala | 1847 Holdings vs. Alliance Global Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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