Correlation Between Hennessy and Voya Global
Can any of the company-specific risk be diversified away by investing in both Hennessy and Voya Global 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 Voya Global 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 Voya Global Bond, you can compare the effects of market volatilities on Hennessy and Voya Global 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 Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy and Voya Global.
Diversification Opportunities for Hennessy and Voya Global
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hennessy and Voya is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Bp Energy and Voya Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Bond 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 Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Bond has no effect on the direction of Hennessy i.e., Hennessy and Voya Global go up and down completely randomly.
Pair Corralation between Hennessy and Voya Global
Assuming the 90 days horizon Hennessy Bp Energy is expected to generate 2.91 times more return on investment than Voya Global. However, Hennessy is 2.91 times more volatile than Voya Global Bond. It trades about 0.05 of its potential returns per unit of risk. Voya Global Bond is currently generating about 0.03 per unit of risk. If you would invest 2,329 in Hennessy Bp Energy on September 12, 2024 and sell it today you would earn a total of 427.00 from holding Hennessy Bp Energy or generate 18.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Bp Energy vs. Voya Global Bond
Performance |
| Timeline |
| Hennessy Bp Energy |
| Voya Global Bond |
Hennessy and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy and Voya Global
The main advantage of trading using opposite Hennessy and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy position performs unexpectedly, Voya Global 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 Voya Global will offset losses from the drop in Voya Global's long position.| Hennessy vs. World Energy Fund | Hennessy vs. Ivy Energy Fund | Hennessy vs. Blackrock All Cap Energy | Hennessy vs. Energy Fund Class |
| Voya Global vs. Intermediate Government Bond | Voya Global vs. Hsbc Government Money | Voya Global vs. Us Government Securities | Voya Global vs. Payden Government Fund |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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