Correlation Between Henderson Global and Henderson International
Can any of the company-specific risk be diversified away by investing in both Henderson Global and Henderson International 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 Henderson Global and Henderson International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henderson Global Equity and Henderson International Opportunities, you can compare the effects of market volatilities on Henderson Global and Henderson International 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 Henderson Global with a short position of Henderson International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henderson Global and Henderson International.
Diversification Opportunities for Henderson Global and Henderson International
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Henderson and Henderson is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Henderson Global Equity and Henderson International Opport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson International and Henderson Global 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 Henderson Global Equity are associated (or correlated) with Henderson International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson International has no effect on the direction of Henderson Global i.e., Henderson Global and Henderson International go up and down completely randomly.
Pair Corralation between Henderson Global and Henderson International
If you would invest 598.00 in Henderson Global Equity on October 21, 2024 and sell it today you would earn a total of 18.00 from holding Henderson Global Equity or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Henderson Global Equity vs. Henderson International Opport
Performance |
| Timeline |
| Henderson Global Equity |
| Henderson International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Henderson Global and Henderson International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henderson Global and Henderson International
The main advantage of trading using opposite Henderson Global and Henderson International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henderson Global position performs unexpectedly, Henderson International 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 Henderson International will offset losses from the drop in Henderson International's long position.| Henderson Global vs. Henderson Global Equity | Henderson Global vs. Thornburg Investment Income | Henderson Global vs. Henderson European Focus | Henderson Global vs. Henderson Global Equity |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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