Correlation Between Flexible Solutions and HONEYWELL
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By analyzing existing cross correlation between Flexible Solutions International and HONEYWELL INTL INC, you can compare the effects of market volatilities on Flexible Solutions 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 Flexible Solutions with a short position of HONEYWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexible Solutions and HONEYWELL.
Diversification Opportunities for Flexible Solutions and HONEYWELL
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flexible and HONEYWELL is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation and HONEYWELL INTL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HONEYWELL INTL INC and Flexible Solutions 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 Flexible Solutions International 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 INTL INC has no effect on the direction of Flexible Solutions i.e., Flexible Solutions and HONEYWELL go up and down completely randomly.
Pair Corralation between Flexible Solutions and HONEYWELL
Considering the 90-day investment horizon Flexible Solutions International is expected to generate 4.57 times more return on investment than HONEYWELL. However, Flexible Solutions is 4.57 times more volatile than HONEYWELL INTL INC. It trades about 0.1 of its potential returns per unit of risk. HONEYWELL INTL INC is currently generating about -0.1 per unit of risk. If you would invest 384.00 in Flexible Solutions International on September 2, 2024 and sell it today you would earn a total of 31.00 from holding Flexible Solutions International or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Flexible Solutions Internation vs. HONEYWELL INTL INC
Performance |
| Timeline |
| Flexible Solutions |
| HONEYWELL INTL INC |
Flexible Solutions and HONEYWELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexible Solutions and HONEYWELL
The main advantage of trading using opposite Flexible Solutions and HONEYWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexible Solutions 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.| Flexible Solutions vs. Orion Engineered Carbons | Flexible Solutions vs. International Flavors Fragrances | Flexible Solutions vs. Sociedad Quimica y | Flexible Solutions vs. Albemarle Corp |
| HONEYWELL vs. Avient Corp | HONEYWELL vs. Flexible Solutions International | HONEYWELL vs. Harmony Gold Mining | HONEYWELL vs. Consol Energy |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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