Correlation Between Travelers Companies and HONEYWELL
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By analyzing existing cross correlation between The Travelers Companies and HONEYWELL INTERNATIONAL INC, you can compare the effects of market volatilities on Travelers Companies 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 Travelers Companies with a short position of HONEYWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and HONEYWELL.
Diversification Opportunities for Travelers Companies and HONEYWELL
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and HONEYWELL is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and HONEYWELL INTERNATIONAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HONEYWELL INTERNATIONAL and Travelers Companies 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 The Travelers Companies 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 Travelers Companies i.e., Travelers Companies and HONEYWELL go up and down completely randomly.
Pair Corralation between Travelers Companies and HONEYWELL
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.77 times more return on investment than HONEYWELL. However, Travelers Companies is 1.77 times more volatile than HONEYWELL INTERNATIONAL INC. It trades about 0.06 of its potential returns per unit of risk. HONEYWELL INTERNATIONAL INC is currently generating about -0.01 per unit of risk. If you would invest 18,034 in The Travelers Companies on September 3, 2024 and sell it today you would earn a total of 8,570 from holding The Travelers Companies or generate 47.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.59% |
| Values | Daily Returns |
The Travelers Companies vs. HONEYWELL INTERNATIONAL INC
Performance |
| Timeline |
| The Travelers Companies |
| HONEYWELL INTERNATIONAL |
Travelers Companies and HONEYWELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and HONEYWELL
The main advantage of trading using opposite Travelers Companies and HONEYWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies 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.| Travelers Companies vs. SPACE | Travelers Companies vs. Ampleforth | Travelers Companies vs. ionet | Travelers Companies vs. KIN |
| HONEYWELL vs. The Travelers Companies | HONEYWELL vs. GE Aerospace | HONEYWELL vs. Walmart | HONEYWELL vs. Pfizer Inc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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