Correlation Between Hennessy and Oppenheimer Flexible
Can any of the company-specific risk be diversified away by investing in both Hennessy and Oppenheimer Flexible 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 Oppenheimer Flexible 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 Oppenheimer Flexible Strategies, you can compare the effects of market volatilities on Hennessy and Oppenheimer Flexible 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 Oppenheimer Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy and Oppenheimer Flexible.
Diversification Opportunities for Hennessy and Oppenheimer Flexible
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hennessy and Oppenheimer is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Bp Energy and Oppenheimer Flexible Strategie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Flexible 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 Oppenheimer Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Flexible has no effect on the direction of Hennessy i.e., Hennessy and Oppenheimer Flexible go up and down completely randomly.
Pair Corralation between Hennessy and Oppenheimer Flexible
Assuming the 90 days horizon Hennessy Bp Energy is expected to generate 5.64 times more return on investment than Oppenheimer Flexible. However, Hennessy is 5.64 times more volatile than Oppenheimer Flexible Strategies. It trades about 0.04 of its potential returns per unit of risk. Oppenheimer Flexible Strategies is currently generating about 0.13 per unit of risk. If you would invest 2,695 in Hennessy Bp Energy on September 3, 2024 and sell it today you would earn a total of 177.00 from holding Hennessy Bp Energy or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Bp Energy vs. Oppenheimer Flexible Strategie
Performance |
| Timeline |
| Hennessy Bp Energy |
| Oppenheimer Flexible |
Hennessy and Oppenheimer Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy and Oppenheimer Flexible
The main advantage of trading using opposite Hennessy and Oppenheimer Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy position performs unexpectedly, Oppenheimer Flexible 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 Oppenheimer Flexible will offset losses from the drop in Oppenheimer Flexible's long position.| Hennessy vs. World Energy Fund | Hennessy vs. Ivy Energy Fund | Hennessy vs. Blackrock All Cap Energy | Hennessy vs. Energy Fund Class |
| Oppenheimer Flexible vs. Gmo Resources | Oppenheimer Flexible vs. Goehring Rozencwajg Resources | Oppenheimer Flexible vs. Jennison Natural Resources | Oppenheimer Flexible vs. Hennessy Bp Energy |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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