Correlation Between Invesco SP and HONEYWELL
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By analyzing existing cross correlation between Invesco SP 500 and HONEYWELL INTERNATIONAL INC, you can compare the effects of market volatilities on Invesco SP 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 Invesco SP with a short position of HONEYWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco SP and HONEYWELL.
Diversification Opportunities for Invesco SP and HONEYWELL
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invesco and HONEYWELL is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Invesco SP 500 and HONEYWELL INTERNATIONAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HONEYWELL INTERNATIONAL and Invesco SP 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 Invesco SP 500 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 Invesco SP i.e., Invesco SP and HONEYWELL go up and down completely randomly.
Pair Corralation between Invesco SP and HONEYWELL
Considering the 90-day investment horizon Invesco SP 500 is expected to generate 2.49 times more return on investment than HONEYWELL. However, Invesco SP is 2.49 times more volatile than HONEYWELL INTERNATIONAL INC. It trades about 0.07 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 2,921 in Invesco SP 500 on September 23, 2024 and sell it today you would earn a total of 1,289 from holding Invesco SP 500 or generate 44.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 97.99% |
Values | Daily Returns |
Invesco SP 500 vs. HONEYWELL INTERNATIONAL INC
Performance |
Timeline |
Invesco SP 500 |
HONEYWELL INTERNATIONAL |
Invesco SP and HONEYWELL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Invesco SP and HONEYWELL
The main advantage of trading using opposite Invesco SP and HONEYWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco SP 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.Invesco SP vs. Vanguard Growth Index | Invesco SP vs. iShares Russell 1000 | Invesco SP vs. iShares SP 500 | Invesco SP vs. SPDR Portfolio SP |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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