Correlation Between Hennessy and Falcon Focus
Can any of the company-specific risk be diversified away by investing in both Hennessy and Falcon Focus 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 and Falcon Focus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hennessy Bp Energy and Falcon Focus Scv, you can compare the effects of market volatilities on Hennessy and Falcon Focus 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 with a short position of Falcon Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy and Falcon Focus.
Diversification Opportunities for Hennessy and Falcon Focus
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hennessy and Falcon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Bp Energy and Falcon Focus Scv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falcon Focus Scv and Hennessy 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 Bp Energy are associated (or correlated) with Falcon Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falcon Focus Scv has no effect on the direction of Hennessy i.e., Hennessy and Falcon Focus go up and down completely randomly.
Pair Corralation between Hennessy and Falcon Focus
If you would invest 2,738 in Hennessy Bp Energy on November 6, 2024 and sell it today you would earn a total of 36.00 from holding Hennessy Bp Energy or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Hennessy Bp Energy vs. Falcon Focus Scv
Performance |
| Timeline |
| Hennessy Bp Energy |
| Falcon Focus Scv |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hennessy and Falcon Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy and Falcon Focus
The main advantage of trading using opposite Hennessy and Falcon Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy position performs unexpectedly, Falcon Focus 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 Falcon Focus will offset losses from the drop in Falcon Focus' long position.| Hennessy vs. World Energy Fund | Hennessy vs. Ivy Energy Fund | Hennessy vs. Blackrock All Cap Energy | Hennessy vs. Energy Fund Class |
| Falcon Focus vs. Qs Large Cap | Falcon Focus vs. Guidemark Large Cap | Falcon Focus vs. Dodge Cox Stock | Falcon Focus vs. Vest Large Cap |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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