Correlation Between Hennessy and Gamco Global
Can any of the company-specific risk be diversified away by investing in both Hennessy and Gamco Global 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 Gamco Global 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 Gamco Global Gold, you can compare the effects of market volatilities on Hennessy and Gamco Global 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 Gamco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy and Gamco Global.
Diversification Opportunities for Hennessy and Gamco Global
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hennessy and Gamco is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Bp Energy and Gamco Global Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Gold 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 Gamco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco Global Gold has no effect on the direction of Hennessy i.e., Hennessy and Gamco Global go up and down completely randomly.
Pair Corralation between Hennessy and Gamco Global
Assuming the 90 days horizon Hennessy Bp Energy is expected to generate 1.56 times more return on investment than Gamco Global. However, Hennessy is 1.56 times more volatile than Gamco Global Gold. It trades about 0.03 of its potential returns per unit of risk. Gamco Global Gold is currently generating about -0.01 per unit of risk. If you would invest 2,383 in Hennessy Bp Energy on October 11, 2024 and sell it today you would earn a total of 355.00 from holding Hennessy Bp Energy or generate 14.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Bp Energy vs. Gamco Global Gold
Performance |
| Timeline |
| Hennessy Bp Energy |
| Gamco Global Gold |
Hennessy and Gamco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy and Gamco Global
The main advantage of trading using opposite Hennessy and Gamco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy position performs unexpectedly, Gamco Global 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 Gamco Global will offset losses from the drop in Gamco Global's long position.| Hennessy vs. World Energy Fund | Hennessy vs. Ivy Energy Fund | Hennessy vs. Blackrock All Cap Energy | Hennessy vs. Energy Fund Class |
| Gamco Global vs. Fidelity Advisor Energy | Gamco Global vs. Clearbridge Energy Mlp | Gamco Global vs. Hennessy Bp Energy | Gamco Global vs. Icon Natural Resources |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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