Correlation Between Hennessy and Ing Intermediate
Can any of the company-specific risk be diversified away by investing in both Hennessy and Ing Intermediate 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 Ing Intermediate 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 Ing Intermediate Bond, you can compare the effects of market volatilities on Hennessy and Ing Intermediate 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 Ing Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy and Ing Intermediate.
Diversification Opportunities for Hennessy and Ing Intermediate
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hennessy and Ing is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Bp Energy and Ing Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Intermediate 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 Ing Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Intermediate Bond has no effect on the direction of Hennessy i.e., Hennessy and Ing Intermediate go up and down completely randomly.
Pair Corralation between Hennessy and Ing Intermediate
Assuming the 90 days horizon Hennessy Bp Energy is expected to generate 3.16 times more return on investment than Ing Intermediate. However, Hennessy is 3.16 times more volatile than Ing Intermediate Bond. It trades about 0.07 of its potential returns per unit of risk. Ing Intermediate Bond is currently generating about 0.06 per unit of risk. If you would invest 2,132 in Hennessy Bp Energy on September 4, 2024 and sell it today you would earn a total of 740.00 from holding Hennessy Bp Energy or generate 34.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Hennessy Bp Energy vs. Ing Intermediate Bond
Performance |
| Timeline |
| Hennessy Bp Energy |
| Ing Intermediate Bond |
Hennessy and Ing Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy and Ing Intermediate
The main advantage of trading using opposite Hennessy and Ing Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy position performs unexpectedly, Ing Intermediate 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 Ing Intermediate will offset losses from the drop in Ing Intermediate's long position.| Hennessy vs. World Energy Fund | Hennessy vs. Ivy Energy Fund | Hennessy vs. Blackrock All Cap Energy | Hennessy vs. Energy Fund Class |
| Ing Intermediate vs. Aqr Managed Futures | Ing Intermediate vs. Goldman Sachs Managed | Ing Intermediate vs. Ab Bond Inflation | Ing Intermediate vs. T Rowe Price |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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