Correlation Between NYSE Composite and HONEYWELL
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By analyzing existing cross correlation between NYSE Composite and HONEYWELL INTERNATIONAL INC, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of HONEYWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and HONEYWELL.
Diversification Opportunities for NYSE Composite and HONEYWELL
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and HONEYWELL is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and HONEYWELL INTERNATIONAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HONEYWELL INTERNATIONAL and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and HONEYWELL go up and down completely randomly.
Pair Corralation between NYSE Composite and HONEYWELL
Assuming the 90 days trading horizon NYSE Composite is expected to generate 98.86 times less return on investment than HONEYWELL. But when comparing it to its historical volatility, NYSE Composite is 112.33 times less risky than HONEYWELL. It trades about 0.08 of its potential returns per unit of risk. HONEYWELL INTERNATIONAL INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7,586 in HONEYWELL INTERNATIONAL INC on August 31, 2024 and sell it today you would lose (1,059) from holding HONEYWELL INTERNATIONAL INC or give up 13.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 64.85% |
| Values | Daily Returns |
NYSE Composite vs. HONEYWELL INTERNATIONAL INC
Performance |
| Timeline |
NYSE Composite and HONEYWELL Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
HONEYWELL INTERNATIONAL INC
Pair trading matchups for HONEYWELL
Pair Trading with NYSE Composite and HONEYWELL
The main advantage of trading using opposite NYSE Composite and HONEYWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| HONEYWELL vs. Reservoir Media | HONEYWELL vs. Radcom | HONEYWELL vs. Arrow Electronics | HONEYWELL vs. Grupo Televisa SAB |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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