# How Honeywell International (HON) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/hon
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on HON alone. It places HON (Honeywell International Inc.) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where HON stands in the market, and of the alternatives worth a closer look.

Period covered: HON's full trading record, from October 1986 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** HON has gone against the market, falling 10.7% over the past 6 months while the S&P 500 rose 9.1%. Its industrial conglomerate peers were far apart over the past 6 months, from RTX (down 0.5%) to CW (Curtiss-Wright, down 32.1%).
- **Stock or market?:** Not a move of its own: the industrial conglomerates ETF XLI (State Street Industrial Select Sector SPDR ETF) fell 6.1% over the past 3 months, with GE (GE Aerospace, down 12.0%) and ETN (Eaton, down 4.6%), while the S&P 500 rose 3.9%. Last month cut against the tape: HON rose 3.3% while the S&P 500 fell 0.6%.
- **Past 1 to 3 years:** Over the past year, HON rose 6.8% against 15.8% for the S&P 500 and 17.9% for the Nasdaq 100. The same gap shows up over 3 years (27.0% against 89.3%). The last two calendar years both went the same way: HON fell 6.3% in 2025, against 15.8% for the S&P 500 and 17.9% for the Nasdaq 100.
- **Long term:** HON turned $10,000 into $26,000 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** Across seven sell-offs, HON has typically fallen 1.2 times as far as the S&P 500. On the flip side, in the 2022 bear market, HON held up better than GE (GE Aerospace), ETN and PH; only HEI (HEICO) and CW fell less.
- **Diversification:** Against the S&P 500, HON has a correlation of 0.55 over 5 years, more closely than 82% of stocks worth at least $300 million. Next to an index fund it is some diversification, but not a hedge.
- **Better options**
  - **Popular alternatives:** ITW (Illinois Tool Works) earned more than HON with less volatility over the past 5 years: 6.7% a year at 21.4% volatility, against 1.5% a year at 22.8%.
  - **Nearby categories and themes:** ADI (Analog Devices, industrial automation theme) earned more for the risk it took than HON over the past 5 years, and its worst fall in 10 years was 33.6%, against 43.0% for HON.
  - **Whole market:** 715 of the 3,633 stocks and funds worth at least $500 million earned more than HON with less volatility over the past 5 years, among them VTI (Vanguard Morningstar Total Stock Market ETF), VOO (Vanguard S&P 500 ETF) and BRK-B (Berkshire Hathaway).

## How much would $10,000 in HON have grown?

This chart tracks a hypothetical $10,000 investment in HON over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of HON over the same span and HON's popular alternatives, among those that traded for the entire period.

- $10,000 invested in HON at the end of September 1997 would have grown to $84,134 by September 2026, less than the $132,907 it would have become in SPY, an S&P 500 fund.
- All eight other investments on the chart ended ahead of HON, and AME finished highest, at $869,262.

## HON at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- HON's deepest decline since it began trading in 1986 was 70.8%, from June 1999 to October 2002. It took about five years from the low to climb back to its old high.
- Over 29 full calendar years, HON's best was 2013, when it returned 45.8%, and its worst was 2008, when it lost 45.9%. It lost money in seven of those years.
- HON is 17.3% below its all-time high.

- Type: Stock, Industrials (Conglomerates)
- Trading since: October 17, 1986
- Market value: $68B
- Volatility (5 years): 22.8%; Sharpe ratio: 0.18
- Worst decline ever: −70.8%, from June 21, 1999 to October 9, 2002; back at its high by October 12, 2007

| Period | HON total return |
| --- | --- |
| 1 month | +3.3% |
| 3 months | −5.4% |
| 6 months | −10.7% |
| year to date | +5.2% |
| 1 year | +6.8% |
| 3 years | +27.0% |
| 5 years | +7.5% |
| 10 years | +160% |

## HON against the whole market

Where HON ranks among every stock and fund, and what across the market has done better.

### How does HON rank among all stocks?

This section ranks HON on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- HON is among the steadier stocks: its price swings rank in the top 7% of the 2,893 stocks worth at least $300 million, where the top is the calmest.

| Measure | HON | Rank |
| --- | --- | --- |
| 1-year return | +6.8% | 1,706 of 3,287 (top 52%) |
| 3-year return | +27.0% | 1,908 of 3,017 (top 64%) |
| 5-year return | +7.5% | 1,625 of 2,893 (top 57%) |
| 10-year return | +160% | 1,029 of 2,202 (top 47%) |
| Volatility, 5 years | 22.8% | 190 of 2,893 (top 7%) |
| Sharpe ratio, 5 years | 0.18 | 1,911 of 2,893 (top 67%) |
| Worst decline, past 10 years | −43.0% | 229 of 2,187 (top 11%) |

### What has beaten HON on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 84 stocks and 631 ETFs worth at least $500 million sit in the green region: each earned more than HON over the past 5 years with smaller price swings. That is 20% of the 3,633 screened.
- Among those with at least half HON's swings, DXJ has the best return for its risk: 26.6% a year at 19.1% volatility, 16% less than HON's 22.8%, and a Sharpe ratio (return above cash per unit of volatility) of 1.34 against 0.18 for HON.
- Among HON's popular alternatives, ITW is in the region. ITW earned 6.7% a year against 1.5% a year for HON, at 21.4% volatility, 6% less than HON's 22.8%.

### Is there a better investment than HON?

The table below lists investments that beat HON over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among HON's popular alternatives, ITW earned more than HON with less volatility over the past 5 years: 6.7% a year at 21.4% volatility, against 1.5% a year at 22.8%.
- Looking beyond its popular alternatives, ADI (industrial automation theme) earned more for the risk it took than HON over the past 5 years, and its worst fall in 10 years was 33.6%, against 43.0% for HON.
- Across the whole market, 715 of the 3,633 stocks and funds worth at least $500 million earned more than HON with less volatility over the past 5 years, among them VTI, VOO and BRK-B.

The 15 strongest of 715 investments that beat HON over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with HON | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| HON: Honeywell International Inc. (this page) |  | +1.5% | 22.8% | 0.18 | −43.0% | +160% |  |  |
| [JNJ](https://easycompare.io/research/jnj): Johnson & Johnson | Pharmaceuticals | +12.7% | 17.9% | 0.76 | −27.4% | +196% | 0.20 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [KO](https://easycompare.io/research/ko): The Coca-Cola Company | Food & Beverages | +14.7% | 16.8% | 0.91 | −37.0% | +204% | 0.37 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | US Large-Cap Value | +12.1% | 13.7% | 0.90 | −36.8% | +235% | 0.62 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.61 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [SCHD](https://easycompare.io/research/schd): Schwab U.S. Dividend Equity ETF | US Dividend Equity | +9.7% | 14.3% | 0.72 | −33.4% | +252% | 0.62 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [RSG](https://easycompare.io/research/rsg): Republic Services, Inc. | Environmental Services | +13.9% | 18.5% | 0.80 | −34.0% | +446% | 0.26 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [WM](https://easycompare.io/research/wm): Waste Management, Inc. | Environmental Services | +9.3% | 19.2% | 0.56 | −30.1% | +344% | 0.28 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [MRSH](https://easycompare.io/research/mrsh): Marsh & McLennan Companies, Inc. | Insurance | +4.4% | 20.9% | 0.31 | −35.8% | +245% | 0.40 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [WCN](https://easycompare.io/research/wcn): Waste Connections, Inc. | Environmental Services | +6.1% | 20.0% | 0.40 | −31.6% | +270% | 0.18 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| HDV: iShares Core High Dividend ETF | US Dividend Equity | +12.9% | 13.0% | 1.00 | −37.0% | +172% | 0.58 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| USMV: iShares MSCI USA Min Vol Factor ETF | US Low-Volatility Equity | +7.6% | 12.3% | 0.66 | −33.1% | +176% | 0.57 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| SDY: State Street SPDR S&P Dividend ETF | US Dividend Equity | +7.6% | 14.0% | 0.59 | −36.7% | +157% | 0.61 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | US Total Market | +11.5% | 17.5% | 0.71 | −35.0% | +302% | 0.54 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| RWL: Invesco S&P 500 Revenue ETF | US Large-Cap Equity | +13.7% | 14.4% | 0.97 | −36.1% | +287% | 0.63 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VOO](https://easycompare.io/research/voo): Vanguard S&P 500 ETF | US Large-Cap Equity | +12.8% | 16.9% | 0.80 | −34.0% | +324% | 0.55 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## HON against its popular alternatives

The investments people most often weigh against HON, compared period by period and year by year.

### How do HON's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Only AME and ITW were both more rewarding and calmer than HON over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, HON returned 1.5% a year, less than the S&P 500's 12.7%, with higher volatility (22.8% against 17.1%).

### Has HON consistently beaten its popular alternatives?

This section compares HON with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- 14 of the 25 popular alternatives, led by TT, EMR and MSFT, outperformed HON in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- TT, EMR and MSFT outperformed HON in every long-term period and in all but one short-term period, the most consistent record in the group.
- TT, AME and MSFT earned more for the risk they took than HON (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of HON | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| HON: Honeywell International Inc. (this page) | +6.8% | +27.0% | +7.5% | +160% |  |  | 0.18 |
| [TT](https://easycompare.io/research/tt): Trane Technologies plc | +11.3% | +154% | +178% | +955% | 5/5 short-term, 3/3 long-term | all-weather | 0.88 |
| [EMR](https://easycompare.io/research/emr): Emerson Electric Co. | +25.0% | +84.9% | +82.1% | +309% | 5/5 short-term, 3/3 long-term | all-weather | 0.57 |
| [MSFT](https://easycompare.io/research/msft): Microsoft Corporation | +3.8% | +66.6% | +80.3% | +946% | 4/5 short-term, 3/3 long-term | all-weather | 0.56 |
| [PH](https://easycompare.io/research/ph): Parker-Hannifin Corporation | +28.7% | +161% | +235% | +789% | 4/5 short-term, 3/3 long-term | all-weather | 0.99 |
| [AME](https://easycompare.io/research/ame): AMETEK, Inc. | +32.8% | +78.1% | +96.1% | +481% | 4/5 short-term, 3/3 long-term | all-weather | 0.72 |
| [JCI](https://easycompare.io/research/jci): Johnson Controls International plc | +35.4% | +220% | +123% | +426% | 4/5 short-term, 3/3 long-term | all-weather | 0.70 |
| [ITW](https://easycompare.io/research/itw): Illinois Tool Works Inc. | +11.7% | +32.1% | +38.4% | +208% | 4/5 short-term, 3/3 long-term | all-weather | 0.41 |
| [PWR](https://easycompare.io/research/pwr): Quanta Services, Inc. | +35.3% | +263% | +425% | +2,045% | 3/5 short-term, 3/3 long-term | consistent | 1.08 |
| [CAT](https://easycompare.io/research/cat): Caterpillar Inc. | +37.7% | +203% | +288% | +936% | 3/5 short-term, 3/3 long-term | consistent | 1.01 |
| [ETN](https://easycompare.io/research/etn): Eaton Corporation plc | +2.3% | +104% | +153% | +657% | 3/5 short-term, 3/3 long-term | consistent | 0.74 |
| [ROK](https://easycompare.io/research/rok): Rockwell Automation, Inc. | +22.9% | +68.9% | +45.6% | +335% | 3/5 short-term, 3/3 long-term | consistent | 0.40 |
| [RTX](https://easycompare.io/research/rtx): RTX Corporation | +22.1% | +183% | +135% | +317% | 3/5 short-term, 3/3 long-term | consistent | 0.83 |
| [MMM](https://easycompare.io/research/mmm): 3M Company | +12.8% | +159% | +37.2% | +76.0% | 5/5 short-term, 2/3 long-term | consistent | 0.36 |
| IR: Ingersoll Rand Inc. | +0.3% | +30.4% | +47.6% | — | 3/5 short-term, 2/3 long-term | consistent | 0.41 |
| DOV: Dover Corporation | +17.9% | +51.3% | +24.2% | +320% | 2/5 short-term, 3/3 long-term |  | 0.30 |
| [HEI](https://easycompare.io/research/hei): HEICO Corporation | −2.4% | +93.4% | +122% | +809% | 1/5 short-term, 3/3 long-term |  | 0.71 |
| [TDG](https://easycompare.io/research/tdg): TransDigm Group Incorporated | −12.2% | +62.5% | +114% | +543% | 0/5 short-term, 3/3 long-term |  | 0.69 |
| CW: Curtiss-Wright Corporation | −11.6% | +148% | +283% | +512% | 0/5 short-term, 3/3 long-term |  | 1.08 |
| [LHX](https://easycompare.io/research/lhx): L3Harris Technologies, Inc. | −13.0% | +49.6% | +13.0% | +229% | 0/5 short-term, 3/3 long-term |  | 0.22 |
| [GE](https://easycompare.io/research/ge): GE Aerospace | −0.4% | +261% | +366% | +139% | 1/5 short-term, 2/3 long-term |  | 1.15 |
| [ADSK](https://easycompare.io/research/adsk): Autodesk, Inc. | −20.3% | +21.2% | −17.8% | +245% | 3/5 short-term, 1/3 long-term |  | 0.07 |
| [CARR](https://easycompare.io/research/carr): Carrier Global Corporation | −1.1% | +21.2% | +11.6% | — | 2/5 short-term, 1/3 long-term |  | 0.23 |
| FTV: Fortive Corporation | +18.9% | +11.7% | +6.3% | +98.0% | 4/5 short-term, 0/3 long-term |  | 0.18 |
| XYL: Xylem Inc. | −27.4% | +18.7% | −11.7% | +143% | 0/5 short-term, 0/3 long-term |  | 0.04 |
| [BA](https://easycompare.io/research/ba): The Boeing Company | −12.2% | +5.8% | −11.9% | +52.4% | 0/5 short-term, 0/3 long-term |  | 0.12 |

### How did HON do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where HON ranked among its popular alternatives each year.

- HON finished ahead of the S&P 500 in 15 of its 29 full calendar years, and behind it in each of the last three.
- Ranked against its popular alternatives each year, HON finished in the top quarter in four of 29 years and in the bottom quarter in nine. In 2025, it ranked 24 of 26.
- Among its popular alternatives, TDG came out ahead of HON most often, in 15 of the 19 years both traded.

| Year | HON | SPY |
| --- | --- | --- |
| 2025 | −6.3% | +17.7% |
| 2024 | +10.2% | +24.9% |
| 2023 | +0.1% | +26.2% |
| 2022 | +5.0% | −18.2% |
| 2021 | −0.2% | +28.7% |
| 2020 | +23.1% | +18.3% |
| 2019 | +36.9% | +31.2% |
| 2018 | −7.5% | −4.6% |
| 2017 | +35.2% | +21.7% |
| 2016 | +14.3% | +12.0% |

## Risk and diversification

How HON has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were HON's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all four of HON's worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after HON fell 70.8% from June 1999 to October 2002; it did not regain that peak until October 2007, five years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −70.8% | June 21, 1999 | October 9, 2002 | October 12, 2007 | −39.6% | dot-com bust |
| −62.2% | May 15, 2008 | March 9, 2009 | March 29, 2011 | −51.3% | 2008 financial crisis |
| −45.9% | March 6, 1987 | December 7, 1987 | November 14, 1991 | — |  |
| −43.0% | January 17, 2020 | March 23, 2020 | November 5, 2020 | −32.4% | Covid crash |
| −31.8% | April 26, 2011 | August 22, 2011 | March 26, 2012 | −16.0% | 2011 euro debt crisis |

### How did HON do in stock market crashes?

This section measures how far HON, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- None of its popular alternatives fell less than HON in most of the crashes they both traded through.
- HON fell further than the S&P 500 in six of the ten crashes it has traded through. The clearest case was the dot-com bust, when HON fell 65.8% and the S&P 500 fell 47.5%.

| Crash | Dates | HON fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −65.8% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −62.2% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −1.8% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −25.3% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −14.4% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −6.8% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −22.1% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −42.2% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −22.7% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −1.4% | −3.4% |

### How closely does HON move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- 18 of the 23 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than HON's 0.77, led by PWR, TT and ETN.
- PWR took just 61% of the S&P 500's losses, against 118% for HON, while still keeping 141% of its gains.
- Over the past 10 years, HON captured 90% of the S&P 500's gains in rising months and 118% of its losses in falling months, with a beta of 1.00. Its share of the market's losses was larger than its share of the gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| HON: Honeywell International Inc. (this page) | 90.0% | 118% | 1.00 |
| [TT](https://easycompare.io/research/tt): Trane Technologies plc | 115% | 69.0% | 1.10 |
| [EMR](https://easycompare.io/research/emr): Emerson Electric Co. | 124% | 153% | 1.39 |
| [MSFT](https://easycompare.io/research/msft): Microsoft Corporation | 127% | 91.0% | 0.96 |
| [PH](https://easycompare.io/research/ph): Parker-Hannifin Corporation | 141% | 126% | 1.43 |
| [AME](https://easycompare.io/research/ame): AMETEK, Inc. | 111% | 101% | 1.15 |
| [JCI](https://easycompare.io/research/jci): Johnson Controls International plc | 102% | 90.0% | 1.17 |
| [ITW](https://easycompare.io/research/itw): Illinois Tool Works Inc. | 94.0% | 116% | 1.04 |
| [PWR](https://easycompare.io/research/pwr): Quanta Services, Inc. | 141% | 61.0% | 1.22 |
| [CAT](https://easycompare.io/research/cat): Caterpillar Inc. | 148% | 122% | 1.27 |
| [ETN](https://easycompare.io/research/etn): Eaton Corporation plc | 114% | 80.0% | 1.16 |
| [ROK](https://easycompare.io/research/rok): Rockwell Automation, Inc. | 122% | 138% | 1.46 |
| [RTX](https://easycompare.io/research/rtx): RTX Corporation | 94.0% | 91.0% | 0.89 |
| [MMM](https://easycompare.io/research/mmm): 3M Company | 86.0% | 136% | 0.99 |
| DOV: Dover Corporation | 114% | 133% | 1.27 |
| [HEI](https://easycompare.io/research/hei): HEICO Corporation | 118% | 85.0% | 1.15 |
| [TDG](https://easycompare.io/research/tdg): TransDigm Group Incorporated | 112% | 97.0% | 1.25 |
| CW: Curtiss-Wright Corporation | 103% | 77.0% | 1.20 |
| [LHX](https://easycompare.io/research/lhx): L3Harris Technologies, Inc. | 72.0% | 65.0% | 0.70 |
| [GE](https://easycompare.io/research/ge): GE Aerospace | 85.0% | 106% | 1.21 |
| [ADSK](https://easycompare.io/research/adsk): Autodesk, Inc. | 130% | 179% | 1.34 |
| FTV: Fortive Corporation | 88.0% | 133% | 1.10 |
| XYL: Xylem Inc. | 90.0% | 123% | 1.03 |
| [BA](https://easycompare.io/research/ba): The Boeing Company | 93.0% | 152% | 1.42 |

### What diversifies HON?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in HON into GLD would have cut the portfolio's volatility by 17% over the past 5 years and raised its annual return (+2.3% for HON alone, +5.9% for the mix).
- Among large ETFs, DXJ, SMH and GLD have moved largely independently of HON over the past 5 years, with correlations of 0.42 or lower, and each still earned a positive 5-year return.
- FIX made money in four of the seven calendar years in which HON lost money.

| Investment | Correlation with HON | 5Y return | Volatility | Sharpe | Rose in HON's 7 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.42 | +225% | 19.1% | 1.34 | 2 of 7 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.26 | +323% | 36.9% | 0.97 | 2 of 7 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.13 | +126% | 18.9% | 0.96 | 2 of 7 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.44 | +136% | 20.8% | 0.93 | 2 of 7 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.47 | +177% | 25.5% | 0.93 | 3 of 7 |
| EWT: iShares MSCI Taiwan ETF | 0.23 | +153% | 24.2% | 0.89 | 3 of 7 |
| EUFN: iShares MSCI Europe Financials ETF | 0.40 | +133% | 21.8% | 0.89 | 2 of 7 |
| AMLP: Alerian MLP ETF | 0.49 | +111% | 18.9% | 0.89 | 2 of 7 |

## Common questions

### What was HON's worst drawdown?

HON's deepest decline since it began trading in 1986 was 70.8%, from June 1999 to October 2002. It took about five years from the low to climb back to its old high.

### What were HON's best and worst years?

Over 29 full calendar years, HON's best year was 2013, when it returned 45.8%. Its worst was 2008, with a return of -45.9%.

### Is there a better investment than HON?

Among HON's popular alternatives, ITW earned more than HON with less volatility over the past 5 years: 6.7% a year at 21.4% volatility, against 1.5% a year at 22.8%. Looking beyond its popular alternatives, ADI (industrial automation theme) earned more for the risk it took than HON over the past 5 years, and its worst fall in 10 years was 33.6%, against 43.0% for HON.

### Is HON more volatile than the S&P 500?

Yes. HON's volatility over the past 5 years was 22.8%, 1.3 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, HON's return lands within 22.8% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is HON's Sharpe ratio?

HON's Sharpe ratio over the past 5 years was 0.18, against 0.79 for the S&P 500, so HON earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is HON with the S&P 500?

Over the past 5 years, HON's monthly returns had a correlation of 0.55 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against HON instead: the lower it is, the more that option would diversify a HON holding.

### What are the best alternatives to HON?

Of the 25 popular alternatives we compared, 14 outperformed HON in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: TT, EMR and MSFT.

### Did HON outperform the S&P 500?

HON finished ahead of the S&P 500 (SPY) in 15 of 29 full calendar years. In 2025, it returned -6.3%, against +17.7% for the index.

### How did HON do in stock market crashes?

HON fell less than the S&P 500 (SPY) in two of the ten major crashes it has traded through, and further in six. The clearest case was the dot-com bust, when HON fell 65.8% and the S&P 500 fell 47.5%.

### What diversifies HON?

These had a low correlation with HON over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.42), SMH (correlation 0.26) and GLD (correlation 0.13); among large stocks, CAH (correlation 0.37), CLS (correlation 0.16) and FIX (correlation 0.33). A correlation near zero means the two have moved largely independently.

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- [RTX Performance, Alternatives and Market Rank](https://easycompare.io/research/rtx)

## Explore further

- Full page with charts: https://easycompare.io/research/hon
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against HON live: https://betterthanspy.com/?b=HON&utm_source=easycompare&utm_medium=research