Correlation Between KENEDIX OFFICE and Honeywell International

Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and Honeywell International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KENEDIX OFFICE and Honeywell International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KENEDIX OFFICE INV and Honeywell International, you can compare the effects of market volatilities on KENEDIX OFFICE and Honeywell International 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 KENEDIX OFFICE with a short position of Honeywell International. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and Honeywell International.

Diversification Opportunities for KENEDIX OFFICE and Honeywell International

0.0

Correlation Coefficient

KENEDIX OFFICE  Honeywell International

Pay attention - limited upside

The 3 months correlation between KENEDIX and Honeywell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and Honeywell International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Honeywell International and KENEDIX OFFICE 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 KENEDIX OFFICE INV are associated (or correlated) with Honeywell International. 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 KENEDIX OFFICE i.e., KENEDIX OFFICE and Honeywell International go up and down completely randomly.

Pair Corralation between KENEDIX OFFICE and Honeywell International

Assuming the 90 days horizon KENEDIX OFFICE INV is expected to under-perform the Honeywell International. In addition to that, KENEDIX OFFICE is 1.13 times more volatile than Honeywell International. It trades about -0.02 of its total potential returns per unit of risk. Honeywell International is currently generating about 0.04 per unit of volatility. If you would invest  17,788  in Honeywell International on October 11, 2024 and sell it today you would earn a total of  3,677  from holding Honeywell International or generate 20.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

KENEDIX OFFICE INV  vs.  Honeywell International

KENEDIX OFFICE INV

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in KENEDIX OFFICE INV are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, KENEDIX OFFICE is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Honeywell International

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Honeywell International are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady fundamental indicators, Honeywell International may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with KENEDIX OFFICE and Honeywell International

The main advantage of trading using opposite KENEDIX OFFICE and Honeywell International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, Honeywell International 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 International will offset losses from the drop in Honeywell International's long position.

The idea behind KENEDIX OFFICE INV and Honeywell International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.