Correlation Between Hennessy Cornerstone and Aberdeen Select
Can any of the company-specific risk be diversified away by investing in both Hennessy Cornerstone and Aberdeen Select 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 Hennessy Cornerstone and Aberdeen Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hennessy Nerstone Value and Aberdeen Select International, you can compare the effects of market volatilities on Hennessy Cornerstone and Aberdeen Select 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 Hennessy Cornerstone with a short position of Aberdeen Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy Cornerstone and Aberdeen Select.
Diversification Opportunities for Hennessy Cornerstone and Aberdeen Select
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hennessy and Aberdeen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Nerstone Value and Aberdeen Select International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Select Inte and Hennessy Cornerstone 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 Hennessy Nerstone Value are associated (or correlated) with Aberdeen Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Select Inte has no effect on the direction of Hennessy Cornerstone i.e., Hennessy Cornerstone and Aberdeen Select go up and down completely randomly.
Pair Corralation between Hennessy Cornerstone and Aberdeen Select
If you would invest 2,186 in Hennessy Nerstone Value on August 25, 2024 and sell it today you would earn a total of 46.00 from holding Hennessy Nerstone Value or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 8.7% |
| Values | Daily Returns |
Hennessy Nerstone Value vs. Aberdeen Select International
Performance |
| Timeline |
| Hennessy Nerstone Value |
| Aberdeen Select Inte |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Hennessy Cornerstone and Aberdeen Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy Cornerstone and Aberdeen Select
The main advantage of trading using opposite Hennessy Cornerstone and Aberdeen Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy Cornerstone position performs unexpectedly, Aberdeen Select 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 Aberdeen Select will offset losses from the drop in Aberdeen Select's long position.| Hennessy Cornerstone vs. Hennessy Nerstone Growth | Hennessy Cornerstone vs. Hennessy Total Return | Hennessy Cornerstone vs. Hennessy Balanced Fund | Hennessy Cornerstone vs. Hennessy Nerstone Large |
| Aberdeen Select vs. William Blair International | Aberdeen Select vs. Artisan International Fund | Aberdeen Select vs. Royce Premier Fund | Aberdeen Select vs. The Jensen Portfolio |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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