Correlation Between Catalent and HONEYWELL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Catalent and HONEYWELL INTL INC, you can compare the effects of market volatilities on Catalent and HONEYWELL 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 Catalent with a short position of HONEYWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalent and HONEYWELL.
Diversification Opportunities for Catalent and HONEYWELL
Very good diversification
The 3 months correlation between Catalent and HONEYWELL is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Catalent and HONEYWELL INTL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HONEYWELL INTL INC and Catalent 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 Catalent are associated (or correlated) with HONEYWELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HONEYWELL INTL INC has no effect on the direction of Catalent i.e., Catalent and HONEYWELL go up and down completely randomly.
Pair Corralation between Catalent and HONEYWELL
Given the investment horizon of 90 days Catalent is expected to generate 2.57 times more return on investment than HONEYWELL. However, Catalent is 2.57 times more volatile than HONEYWELL INTL INC. It trades about 0.04 of its potential returns per unit of risk. HONEYWELL INTL INC is currently generating about 0.01 per unit of risk. If you would invest 4,545 in Catalent on September 23, 2024 and sell it today you would earn a total of 1,803 from holding Catalent or generate 39.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 48.79% |
Values | Daily Returns |
Catalent vs. HONEYWELL INTL INC
Performance |
Timeline |
Catalent |
HONEYWELL INTL INC |
Catalent and HONEYWELL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Catalent and HONEYWELL
The main advantage of trading using opposite Catalent and HONEYWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalent position performs unexpectedly, HONEYWELL 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 HONEYWELL will offset losses from the drop in HONEYWELL's long position.Catalent vs. Oric Pharmaceuticals | Catalent vs. Lyra Therapeutics | Catalent vs. Inhibrx | Catalent vs. ESSA Pharma |
HONEYWELL vs. AEP TEX INC | HONEYWELL vs. US BANK NATIONAL | HONEYWELL vs. Brightsphere Investment Group | HONEYWELL vs. Neurocrine Biosciences |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |