Correlation Between Honeywell Automation and ITI
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By analyzing existing cross correlation between Honeywell Automation India and ITI Limited, you can compare the effects of market volatilities on Honeywell Automation and ITI 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 Automation with a short position of ITI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Honeywell Automation and ITI.
Diversification Opportunities for Honeywell Automation and ITI
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Honeywell and ITI is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Honeywell Automation India and ITI Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITI Limited and Honeywell Automation 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 Automation India are associated (or correlated) with ITI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITI Limited has no effect on the direction of Honeywell Automation i.e., Honeywell Automation and ITI go up and down completely randomly.
Pair Corralation between Honeywell Automation and ITI
Assuming the 90 days trading horizon Honeywell Automation India is expected to generate 0.25 times more return on investment than ITI. However, Honeywell Automation India is 3.95 times less risky than ITI. It trades about -0.1 of its potential returns per unit of risk. ITI Limited is currently generating about -0.07 per unit of risk. If you would invest 4,237,010 in Honeywell Automation India on November 2, 2024 and sell it today you would lose (186,180) from holding Honeywell Automation India or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Honeywell Automation India vs. ITI Limited
Performance |
| Timeline |
| Honeywell Automation |
| ITI Limited |
Honeywell Automation and ITI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Honeywell Automation and ITI
The main advantage of trading using opposite Honeywell Automation and ITI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Honeywell Automation position performs unexpectedly, ITI 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 ITI will offset losses from the drop in ITI's long position.| Honeywell Automation vs. Vraj Iron and | Honeywell Automation vs. The Indian Hotels | Honeywell Automation vs. Popular Vehicles and | Honeywell Automation vs. Kalyani Steels Limited |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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