Correlation Between Kontoor Brands and HONEYWELL
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By analyzing existing cross correlation between Kontoor Brands and HONEYWELL INTERNATIONAL INC, you can compare the effects of market volatilities on Kontoor Brands 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 Kontoor Brands with a short position of HONEYWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontoor Brands and HONEYWELL.
Diversification Opportunities for Kontoor Brands and HONEYWELL
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kontoor and HONEYWELL is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kontoor Brands and HONEYWELL INTERNATIONAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HONEYWELL INTERNATIONAL and Kontoor Brands 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 Kontoor Brands 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 INTERNATIONAL has no effect on the direction of Kontoor Brands i.e., Kontoor Brands and HONEYWELL go up and down completely randomly.
Pair Corralation between Kontoor Brands and HONEYWELL
Considering the 90-day investment horizon Kontoor Brands is expected to generate 1.7 times more return on investment than HONEYWELL. However, Kontoor Brands is 1.7 times more volatile than HONEYWELL INTERNATIONAL INC. It trades about 0.17 of its potential returns per unit of risk. HONEYWELL INTERNATIONAL INC is currently generating about -0.19 per unit of risk. If you would invest 8,563 in Kontoor Brands on September 1, 2024 and sell it today you would earn a total of 615.00 from holding Kontoor Brands or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kontoor Brands vs. HONEYWELL INTERNATIONAL INC
Performance |
| Timeline |
| Kontoor Brands |
| HONEYWELL INTERNATIONAL |
Kontoor Brands and HONEYWELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontoor Brands and HONEYWELL
The main advantage of trading using opposite Kontoor Brands and HONEYWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontoor Brands 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.| Kontoor Brands vs. VF Corporation | Kontoor Brands vs. Levi Strauss Co | Kontoor Brands vs. Columbia Sportswear | Kontoor Brands vs. Oxford Industries |
| HONEYWELL vs. GE Vernova LLC | HONEYWELL vs. Kontoor Brands | HONEYWELL vs. NRG Energy | HONEYWELL vs. Southwest Gas Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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