Correlation Between Hennessy and Jpmorgan Trust
Can any of the company-specific risk be diversified away by investing in both Hennessy and Jpmorgan Trust 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 Jpmorgan Trust 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 Jpmorgan Trust I, you can compare the effects of market volatilities on Hennessy and Jpmorgan Trust 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 Jpmorgan Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy and Jpmorgan Trust.
Diversification Opportunities for Hennessy and Jpmorgan Trust
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hennessy and Jpmorgan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Bp Energy and Jpmorgan Trust I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Trust I 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 Jpmorgan Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Trust I has no effect on the direction of Hennessy i.e., Hennessy and Jpmorgan Trust go up and down completely randomly.
Pair Corralation between Hennessy and Jpmorgan Trust
Assuming the 90 days horizon Hennessy Bp Energy is expected to generate 9.33 times more return on investment than Jpmorgan Trust. However, Hennessy is 9.33 times more volatile than Jpmorgan Trust I. It trades about 0.15 of its potential returns per unit of risk. Jpmorgan Trust I is currently generating about 0.12 per unit of risk. If you would invest 2,583 in Hennessy Bp Energy on September 3, 2024 and sell it today you would earn a total of 289.00 from holding Hennessy Bp Energy or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Hennessy Bp Energy vs. Jpmorgan Trust I
Performance |
| Timeline |
| Hennessy Bp Energy |
| Jpmorgan Trust I |
Hennessy and Jpmorgan Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy and Jpmorgan Trust
The main advantage of trading using opposite Hennessy and Jpmorgan Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy position performs unexpectedly, Jpmorgan Trust 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 Jpmorgan Trust will offset losses from the drop in Jpmorgan Trust's long position.| Hennessy vs. World Energy Fund | Hennessy vs. Ivy Energy Fund | Hennessy vs. Blackrock All Cap Energy | Hennessy vs. Energy Fund Class |
| Jpmorgan Trust vs. Small Midcap Dividend Income | Jpmorgan Trust vs. The Hartford Small | Jpmorgan Trust vs. Rbb Fund | Jpmorgan Trust vs. Qs Small Capitalization |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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