Correlation Between ESGL Holdings and HONEYWELL
Specify exactly 2 symbols:
By analyzing existing cross correlation between ESGL Holdings Limited and HONEYWELL INTERNATIONAL INC, you can compare the effects of market volatilities on ESGL Holdings 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 ESGL Holdings with a short position of HONEYWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESGL Holdings and HONEYWELL.
Diversification Opportunities for ESGL Holdings and HONEYWELL
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ESGL and HONEYWELL is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding ESGL Holdings Limited and HONEYWELL INTERNATIONAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HONEYWELL INTERNATIONAL and ESGL Holdings 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 ESGL Holdings Limited 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 ESGL Holdings i.e., ESGL Holdings and HONEYWELL go up and down completely randomly.
Pair Corralation between ESGL Holdings and HONEYWELL
Assuming the 90 days horizon ESGL Holdings Limited is expected to under-perform the HONEYWELL. But the stock apears to be less risky and, when comparing its historical volatility, ESGL Holdings Limited is 1.19 times less risky than HONEYWELL. The stock trades about -0.23 of its potential returns per unit of risk. The HONEYWELL INTERNATIONAL INC is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 6,507 in HONEYWELL INTERNATIONAL INC on September 23, 2024 and sell it today you would earn a total of 955.00 from holding HONEYWELL INTERNATIONAL INC or generate 14.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 93.33% |
Values | Daily Returns |
ESGL Holdings Limited vs. HONEYWELL INTERNATIONAL INC
Performance |
Timeline |
ESGL Holdings Limited |
HONEYWELL INTERNATIONAL |
ESGL Holdings and HONEYWELL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ESGL Holdings and HONEYWELL
The main advantage of trading using opposite ESGL Holdings and HONEYWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESGL Holdings 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.ESGL Holdings vs. Genpact Limited | ESGL Holdings vs. Broadridge Financial Solutions | ESGL Holdings vs. First Advantage Corp | ESGL Holdings vs. Franklin Covey |
HONEYWELL vs. Summa Silver Corp | HONEYWELL vs. Carters | HONEYWELL vs. Asure Software | HONEYWELL vs. Kaltura |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |