Correlation Between HONEYWELL and Chimerix
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By analyzing existing cross correlation between HONEYWELL INTL INC and Chimerix, you can compare the effects of market volatilities on HONEYWELL and Chimerix 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 Chimerix. Check out your portfolio center. Please also check ongoing floating volatility patterns of HONEYWELL and Chimerix.
Diversification Opportunities for HONEYWELL and Chimerix
Pay attention - limited upside
The 3 months correlation between HONEYWELL and Chimerix is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding HONEYWELL INTL INC and Chimerix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimerix 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 Chimerix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimerix has no effect on the direction of HONEYWELL i.e., HONEYWELL and Chimerix go up and down completely randomly.
Pair Corralation between HONEYWELL and Chimerix
Assuming the 90 days trading horizon HONEYWELL INTL INC is expected to generate 9.25 times more return on investment than Chimerix. However, HONEYWELL is 9.25 times more volatile than Chimerix. It trades about 0.09 of its potential returns per unit of risk. Chimerix is currently generating about 0.05 per unit of risk. If you would invest 8,580 in HONEYWELL INTL INC on November 29, 2024 and sell it today you would lose (461.00) from holding HONEYWELL INTL INC or give up 5.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 44.53% |
| Values | Daily Returns |
HONEYWELL INTL INC vs. Chimerix
Performance |
| Timeline |
| HONEYWELL INTL INC |
| Chimerix |
HONEYWELL and Chimerix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HONEYWELL and Chimerix
The main advantage of trading using opposite HONEYWELL and Chimerix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HONEYWELL position performs unexpectedly, Chimerix 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 Chimerix will offset losses from the drop in Chimerix's long position.| HONEYWELL vs. Suntory Beverage Food | HONEYWELL vs. Norfolk Southern | HONEYWELL vs. Fernhill Beverage | HONEYWELL vs. Hafnia Limited |
| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil Bio |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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