Correlation Between Dow Jones and HONEYWELL
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By analyzing existing cross correlation between Dow Jones Industrial and HONEYWELL INTERNATIONAL INC, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of HONEYWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and HONEYWELL.
Diversification Opportunities for Dow Jones and HONEYWELL
Very good diversification
The 3 months correlation between Dow and HONEYWELL is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and HONEYWELL INTERNATIONAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HONEYWELL INTERNATIONAL and Dow Jones 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 Dow Jones Industrial 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 INTERNATIONAL has no effect on the direction of Dow Jones i.e., Dow Jones and HONEYWELL go up and down completely randomly.
Pair Corralation between Dow Jones and HONEYWELL
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.64 times more return on investment than HONEYWELL. However, Dow Jones is 1.64 times more volatile than HONEYWELL INTERNATIONAL INC. It trades about 0.08 of its potential returns per unit of risk. HONEYWELL INTERNATIONAL INC is currently generating about 0.0 per unit of risk. If you would invest 3,313,637 in Dow Jones Industrial on September 23, 2024 and sell it today you would earn a total of 970,389 from holding Dow Jones Industrial or generate 29.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 97.99% |
Values | Daily Returns |
Dow Jones Industrial vs. HONEYWELL INTERNATIONAL INC
Performance |
Timeline |
Dow Jones and HONEYWELL Volatility Contrast
Predicted Return Density |
Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
HONEYWELL INTERNATIONAL INC
Pair trading matchups for HONEYWELL
Pair Trading with Dow Jones and HONEYWELL
The main advantage of trading using opposite Dow Jones and HONEYWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.Dow Jones vs. Nok Airlines Public | Dow Jones vs. Alaska Air Group | Dow Jones vs. Universal Music Group | Dow Jones vs. Copa Holdings SA |
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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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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