Correlation Between Hennessy and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Hennessy and Massmutual Select 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 Massmutual Select 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 Massmutual Select Growth, you can compare the effects of market volatilities on Hennessy and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy and Massmutual Select.
Diversification Opportunities for Hennessy and Massmutual Select
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hennessy and Massmutual is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Bp Energy and Massmutual Select Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Growth 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 Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Growth has no effect on the direction of Hennessy i.e., Hennessy and Massmutual Select go up and down completely randomly.
Pair Corralation between Hennessy and Massmutual Select
If you would invest 2,588 in Hennessy Bp Energy on September 1, 2024 and sell it today you would earn a total of 271.00 from holding Hennessy Bp Energy or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Hennessy Bp Energy vs. Massmutual Select Growth
Performance |
| Timeline |
| Hennessy Bp Energy |
| Massmutual Select Growth |
Hennessy and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy and Massmutual Select
The main advantage of trading using opposite Hennessy and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| Hennessy vs. World Energy Fund | Hennessy vs. Ivy Energy Fund | Hennessy vs. Blackrock All Cap Energy | Hennessy vs. Energy Fund Class |
| Massmutual Select vs. Massmutual Select Mid | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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