Correlation Between HONEYWELL and GE Vernova
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By analyzing existing cross correlation between HONEYWELL INTERNATIONAL INC and GE Vernova LLC, you can compare the effects of market volatilities on HONEYWELL and GE Vernova 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 GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of HONEYWELL and GE Vernova.
Diversification Opportunities for HONEYWELL and GE Vernova
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HONEYWELL and GEV is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding HONEYWELL INTERNATIONAL INC and GE Vernova LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Vernova LLC 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 INTERNATIONAL INC are associated (or correlated) with GE Vernova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE Vernova LLC has no effect on the direction of HONEYWELL i.e., HONEYWELL and GE Vernova go up and down completely randomly.
Pair Corralation between HONEYWELL and GE Vernova
Assuming the 90 days trading horizon HONEYWELL INTERNATIONAL INC is expected to under-perform the GE Vernova. But the bond apears to be less risky and, when comparing its historical volatility, HONEYWELL INTERNATIONAL INC is 2.79 times less risky than GE Vernova. The bond trades about -0.19 of its potential returns per unit of risk. The GE Vernova LLC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 30,166 in GE Vernova LLC on September 1, 2024 and sell it today you would earn a total of 3,246 from holding GE Vernova LLC or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HONEYWELL INTERNATIONAL INC vs. GE Vernova LLC
Performance |
| Timeline |
| HONEYWELL INTERNATIONAL |
| GE Vernova LLC |
HONEYWELL and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HONEYWELL and GE Vernova
The main advantage of trading using opposite HONEYWELL and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HONEYWELL position performs unexpectedly, GE Vernova 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 GE Vernova will offset losses from the drop in GE Vernova's long position.| HONEYWELL vs. GE Vernova LLC | HONEYWELL vs. Kontoor Brands | HONEYWELL vs. NRG Energy | HONEYWELL vs. Southwest Gas Holdings |
| GE Vernova vs. Equinix | GE Vernova vs. Stepstone Group | GE Vernova vs. Artisan Partners Asset | GE Vernova vs. Alvarium Tiedemann Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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