Hennessy Large Correlations

HLFNX Fund  USD 32.50  0.19  0.59%   
The current 90-days correlation between Hennessy Large Cap and Hennessy Small Cap is 0.74 (i.e., Poor diversification). The correlation of Hennessy Large is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Hennessy Large Correlation With Market

Very weak diversification

The correlation between Hennessy Large Cap and DJI is 0.4 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Large Cap and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Hennessy Large Cap. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Moving together with Hennessy Mutual Fund

  0.76HICVX Hennessy Nerstone ValuePairCorr
  1.0HILFX Hennessy Large CapPairCorr
  0.77HMSFX Hennessy Bp MidstreamPairCorr
  0.77HMSIX Hennessy Bp MidstreamPairCorr
  0.65HNRGX Hennessy Bp EnergyPairCorr
  0.65HNRIX Hennessy Bp EnergyPairCorr
  0.73HBFBX Hennessy BalancedPairCorr
  0.76HTECX Hennessy TechnologyPairCorr
  0.77HTCIX Hennessy TechnologyPairCorr
  0.81HDOGX Hennessy Total ReturnPairCorr
  0.75HFCVX Hennessy Nerstone ValuePairCorr
  0.96VFAIX Vanguard Financials IndexPairCorr
  0.84DVFYX Davis FinancialPairCorr
  0.83RPFGX Davis FinancialPairCorr
  0.76DFFCX Davis FinancialPairCorr

Moving against Hennessy Mutual Fund

  0.42SMPIX Semiconductor Ultrasector Steady GrowthPairCorr
  0.41SMPSX Semiconductor Ultrasector Steady GrowthPairCorr
  0.32FELTX Fidelity Advisor SemPairCorr
  0.31FELAX Fidelity Advisor SemPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Hennessy Mutual Fund performing well and Hennessy Large Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Hennessy Large's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.