Correlation Between Day Hagan and Hennessy Technology
Can any of the company-specific risk be diversified away by investing in both Day Hagan and Hennessy Technology 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 Day Hagan and Hennessy Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Day Hagan Tactical and Hennessy Technology Fund, you can compare the effects of market volatilities on Day Hagan and Hennessy Technology 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 Day Hagan with a short position of Hennessy Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Day Hagan and Hennessy Technology.
Diversification Opportunities for Day Hagan and Hennessy Technology
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Day and Hennessy is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Day Hagan Tactical and Hennessy Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hennessy Technology and Day Hagan 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 Day Hagan Tactical are associated (or correlated) with Hennessy Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hennessy Technology has no effect on the direction of Day Hagan i.e., Day Hagan and Hennessy Technology go up and down completely randomly.
Pair Corralation between Day Hagan and Hennessy Technology
If you would invest 2,277 in Hennessy Technology Fund on August 31, 2024 and sell it today you would earn a total of 119.00 from holding Hennessy Technology Fund or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Day Hagan Tactical vs. Hennessy Technology Fund
Performance |
| Timeline |
| Day Hagan Tactical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hennessy Technology |
Day Hagan and Hennessy Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Day Hagan and Hennessy Technology
The main advantage of trading using opposite Day Hagan and Hennessy Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Day Hagan position performs unexpectedly, Hennessy Technology 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 Hennessy Technology will offset losses from the drop in Hennessy Technology's long position.| Day Hagan vs. Hennessy Technology Fund | Day Hagan vs. Science Technology Fund | Day Hagan vs. Mfs Technology Fund | Day Hagan vs. Fidelity Advisor Technology |
| Hennessy Technology vs. Black Oak Emerging | Hennessy Technology vs. Hennessy Large Cap | Hennessy Technology vs. Hennessy Small Cap | Hennessy Technology vs. Firsthand Alternative Energy |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |