Correlation Between HONEYWELL and GMS
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By analyzing existing cross correlation between HONEYWELL INTERNATIONAL INC and GMS Inc, you can compare the effects of market volatilities on HONEYWELL and GMS 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 GMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of HONEYWELL and GMS.
Diversification Opportunities for HONEYWELL and GMS
Pay attention - limited upside
The 3 months correlation between HONEYWELL and GMS is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding HONEYWELL INTERNATIONAL INC and GMS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMS Inc 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 GMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMS Inc has no effect on the direction of HONEYWELL i.e., HONEYWELL and GMS go up and down completely randomly.
Pair Corralation between HONEYWELL and GMS
Assuming the 90 days trading horizon HONEYWELL INTERNATIONAL INC is expected to under-perform the GMS. But the bond apears to be less risky and, when comparing its historical volatility, HONEYWELL INTERNATIONAL INC is 1.37 times less risky than GMS. The bond trades about -0.19 of its potential returns per unit of risk. The GMS Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 8,989 in GMS Inc on September 3, 2024 and sell it today you would earn a total of 1,046 from holding GMS Inc or generate 11.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
HONEYWELL INTERNATIONAL INC vs. GMS Inc
Performance |
| Timeline |
| HONEYWELL INTERNATIONAL |
| GMS Inc |
HONEYWELL and GMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HONEYWELL and GMS
The main advantage of trading using opposite HONEYWELL and GMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HONEYWELL position performs unexpectedly, GMS 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 GMS will offset losses from the drop in GMS's long position.| HONEYWELL vs. The Travelers Companies | HONEYWELL vs. GE Aerospace | HONEYWELL vs. Walmart | HONEYWELL vs. Pfizer Inc |
| GMS vs. Quanex Building Products | GMS vs. Apogee Enterprises | GMS vs. Azek Company | GMS vs. Beacon Roofing Supply |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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