Correlation Between Hoteles City and Honeywell International
Can any of the company-specific risk be diversified away by investing in both Hoteles City 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 Hoteles City and Honeywell International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoteles City Express and Honeywell International, you can compare the effects of market volatilities on Hoteles City 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 Hoteles City with a short position of Honeywell International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoteles City and Honeywell International.
Diversification Opportunities for Hoteles City and Honeywell International
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hoteles and Honeywell is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Hoteles City Express and Honeywell International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Honeywell International and Hoteles City 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 Hoteles City Express 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 Hoteles City i.e., Hoteles City and Honeywell International go up and down completely randomly.
Pair Corralation between Hoteles City and Honeywell International
Assuming the 90 days trading horizon Hoteles City is expected to generate 2.09 times less return on investment than Honeywell International. In addition to that, Hoteles City is 1.79 times more volatile than Honeywell International. It trades about 0.02 of its total potential returns per unit of risk. Honeywell International is currently generating about 0.09 per unit of volatility. If you would invest 390,551 in Honeywell International on October 19, 2024 and sell it today you would earn a total of 75,649 from holding Honeywell International or generate 19.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.31% |
| Values | Daily Returns |
Hoteles City Express vs. Honeywell International
Performance |
| Timeline |
| Hoteles City Express |
| Honeywell International |
Hoteles City and Honeywell International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoteles City and Honeywell International
The main advantage of trading using opposite Hoteles City and Honeywell International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoteles City 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.| Hoteles City vs. Controladora Vuela Compaa | Hoteles City vs. Nemak S A | Hoteles City vs. Grupo Comercial Chedraui |
| Honeywell International vs. The Bank of | Honeywell International vs. Hoteles City Express | Honeywell International vs. Grupo Hotelero Santa | Honeywell International vs. Martin Marietta Materials |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |