Correlation Between HONEYWELL and Aegon NV
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By analyzing existing cross correlation between HONEYWELL INTERNATIONAL INC and Aegon NV ADR, you can compare the effects of market volatilities on HONEYWELL and Aegon NV 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 HONEYWELL with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of HONEYWELL and Aegon NV.
Diversification Opportunities for HONEYWELL and Aegon NV
Very weak diversification
The 3 months correlation between HONEYWELL and Aegon is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding HONEYWELL INTERNATIONAL INC and Aegon NV ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV ADR and HONEYWELL 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 HONEYWELL INTERNATIONAL INC are associated (or correlated) with Aegon NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon NV ADR has no effect on the direction of HONEYWELL i.e., HONEYWELL and Aegon NV go up and down completely randomly.
Pair Corralation between HONEYWELL and Aegon NV
Assuming the 90 days trading horizon HONEYWELL INTERNATIONAL INC is expected to generate 0.15 times more return on investment than Aegon NV. However, HONEYWELL INTERNATIONAL INC is 6.65 times less risky than Aegon NV. It trades about -0.36 of its potential returns per unit of risk. Aegon NV ADR is currently generating about -0.2 per unit of risk. If you would invest 8,764 in HONEYWELL INTERNATIONAL INC on October 8, 2024 and sell it today you would lose (146.00) from holding HONEYWELL INTERNATIONAL INC or give up 1.67% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
HONEYWELL INTERNATIONAL INC vs. Aegon NV ADR
Performance |
Timeline |
HONEYWELL INTERNATIONAL |
Aegon NV ADR |
HONEYWELL and Aegon NV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HONEYWELL and Aegon NV
The main advantage of trading using opposite HONEYWELL and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HONEYWELL position performs unexpectedly, Aegon NV 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 Aegon NV will offset losses from the drop in Aegon NV's long position.HONEYWELL vs. RLX Technology | HONEYWELL vs. RCI Hospitality Holdings | HONEYWELL vs. Biglari Holdings | HONEYWELL vs. First Watch Restaurant |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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