Correlation Between Hennessy and State Street
Can any of the company-specific risk be diversified away by investing in both Hennessy and State Street 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 State Street 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 State Street Institutional, you can compare the effects of market volatilities on Hennessy and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy and State Street.
Diversification Opportunities for Hennessy and State Street
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hennessy and State is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Bp Energy and State Street Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Institu 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Institu has no effect on the direction of Hennessy i.e., Hennessy and State Street go up and down completely randomly.
Pair Corralation between Hennessy and State Street
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 | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Hennessy Bp Energy vs. State Street Institutional
Performance |
| Timeline |
| Hennessy Bp Energy |
| State Street Institu |
Hennessy and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy and State Street
The main advantage of trading using opposite Hennessy and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Hennessy vs. World Energy Fund | Hennessy vs. Ivy Energy Fund | Hennessy vs. Blackrock All Cap Energy | Hennessy vs. Energy Fund Class |
| State Street vs. Hennessy Bp Energy | State Street vs. Adams Natural Resources | State Street vs. Clearbridge Energy Mlp | State Street vs. Calvert Global 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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