Correlation Between HONEYWELL and Cementos Pacasmayo
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By analyzing existing cross correlation between HONEYWELL INTL INC and Cementos Pacasmayo SAA, you can compare the effects of market volatilities on HONEYWELL and Cementos Pacasmayo 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 Cementos Pacasmayo. Check out your portfolio center. Please also check ongoing floating volatility patterns of HONEYWELL and Cementos Pacasmayo.
Diversification Opportunities for HONEYWELL and Cementos Pacasmayo
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HONEYWELL and Cementos is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding HONEYWELL INTL INC and Cementos Pacasmayo SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cementos Pacasmayo SAA 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 Cementos Pacasmayo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cementos Pacasmayo SAA has no effect on the direction of HONEYWELL i.e., HONEYWELL and Cementos Pacasmayo go up and down completely randomly.
Pair Corralation between HONEYWELL and Cementos Pacasmayo
Assuming the 90 days trading horizon HONEYWELL INTL INC is expected to generate 0.36 times more return on investment than Cementos Pacasmayo. However, HONEYWELL INTL INC is 2.79 times less risky than Cementos Pacasmayo. It trades about -0.1 of its potential returns per unit of risk. Cementos Pacasmayo SAA is currently generating about -0.2 per unit of risk. If you would invest 10,503 in HONEYWELL INTL INC on September 2, 2024 and sell it today you would lose (203.00) from holding HONEYWELL INTL INC or give up 1.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
HONEYWELL INTL INC vs. Cementos Pacasmayo SAA
Performance |
| Timeline |
| HONEYWELL INTL INC |
| Cementos Pacasmayo SAA |
HONEYWELL and Cementos Pacasmayo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HONEYWELL and Cementos Pacasmayo
The main advantage of trading using opposite HONEYWELL and Cementos Pacasmayo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HONEYWELL position performs unexpectedly, Cementos Pacasmayo 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 Cementos Pacasmayo will offset losses from the drop in Cementos Pacasmayo's long position.| HONEYWELL vs. Avient Corp | HONEYWELL vs. Flexible Solutions International | HONEYWELL vs. Harmony Gold Mining | HONEYWELL vs. Consol Energy |
| Cementos Pacasmayo vs. Summit Materials | Cementos Pacasmayo vs. Eagle Materials | Cementos Pacasmayo vs. United States Lime | Cementos Pacasmayo vs. James Hardie 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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