Correlation Between HONEYWELL and Consol Energy
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By analyzing existing cross correlation between HONEYWELL INTL INC and Consol Energy, you can compare the effects of market volatilities on HONEYWELL and Consol Energy 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 with a short position of Consol Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HONEYWELL and Consol Energy.
Diversification Opportunities for HONEYWELL and Consol Energy
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HONEYWELL and Consol is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding HONEYWELL INTL INC and Consol Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consol Energy and HONEYWELL 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 INTL INC are associated (or correlated) with Consol Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consol Energy has no effect on the direction of HONEYWELL i.e., HONEYWELL and Consol Energy go up and down completely randomly.
Pair Corralation between HONEYWELL and Consol Energy
Assuming the 90 days trading horizon HONEYWELL INTL INC is expected to under-perform the Consol Energy. But the bond apears to be less risky and, when comparing its historical volatility, HONEYWELL INTL INC is 3.09 times less risky than Consol Energy. The bond trades about -0.1 of its potential returns per unit of risk. The Consol Energy is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 10,909 in Consol Energy on September 2, 2024 and sell it today you would earn a total of 2,161 from holding Consol Energy or generate 19.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
HONEYWELL INTL INC vs. Consol Energy
Performance |
| Timeline |
| HONEYWELL INTL INC |
| Consol Energy |
HONEYWELL and Consol Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HONEYWELL and Consol Energy
The main advantage of trading using opposite HONEYWELL and Consol Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HONEYWELL position performs unexpectedly, Consol Energy 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 Consol Energy will offset losses from the drop in Consol Energy's long position.| HONEYWELL vs. Avient Corp | HONEYWELL vs. Flexible Solutions International | HONEYWELL vs. Harmony Gold Mining | HONEYWELL vs. Consol Energy |
| Consol Energy vs. Alliance Resource Partners | Consol Energy vs. Natural Resource Partners | Consol Energy vs. Hallador Energy | Consol Energy vs. NACCO Industries |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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