Correlation Between Honeywell International and Barry Callebaut
Can any of the company-specific risk be diversified away by investing in both Honeywell International and Barry Callebaut 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 Honeywell International and Barry Callebaut into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Honeywell International and Barry Callebaut AG, you can compare the effects of market volatilities on Honeywell International and Barry Callebaut 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 Honeywell International with a short position of Barry Callebaut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Honeywell International and Barry Callebaut.
Diversification Opportunities for Honeywell International and Barry Callebaut
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Honeywell and Barry is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Honeywell International and Barry Callebaut AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barry Callebaut AG and Honeywell International 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 Honeywell International are associated (or correlated) with Barry Callebaut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barry Callebaut AG has no effect on the direction of Honeywell International i.e., Honeywell International and Barry Callebaut go up and down completely randomly.
Pair Corralation between Honeywell International and Barry Callebaut
Considering the 90-day investment horizon Honeywell International is expected to generate 0.45 times more return on investment than Barry Callebaut. However, Honeywell International is 2.23 times less risky than Barry Callebaut. It trades about 0.02 of its potential returns per unit of risk. Barry Callebaut AG is currently generating about -0.01 per unit of risk. If you would invest 20,585 in Honeywell International on September 14, 2024 and sell it today you would earn a total of 2,184 from holding Honeywell International or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.02% |
| Values | Daily Returns |
Honeywell International vs. Barry Callebaut AG
Performance |
| Timeline |
| Honeywell International |
| Barry Callebaut AG |
Honeywell International and Barry Callebaut Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Honeywell International and Barry Callebaut
The main advantage of trading using opposite Honeywell International and Barry Callebaut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Honeywell International position performs unexpectedly, Barry Callebaut 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 Barry Callebaut will offset losses from the drop in Barry Callebaut's long position.| Honeywell International vs. Vast Renewables Limited | Honeywell International vs. 1847 Holdings LLC | Honeywell International vs. Westport Fuel Systems | Honeywell International vs. Falcons Beyond Global, |
| Barry Callebaut vs. Hershey Co | Barry Callebaut vs. Mondelez International | Barry Callebaut vs. Chocoladefabriken Lindt Sprngli | Barry Callebaut vs. Bunzl plc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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