Correlation Between Hennessy and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Hennessy and Asg Managed 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 Asg Managed 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 Asg Managed Futures, you can compare the effects of market volatilities on Hennessy and Asg Managed 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 Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy and Asg Managed.
Diversification Opportunities for Hennessy and Asg Managed
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hennessy and Asg is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Bp Energy and Asg Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Managed Futures 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 Asg Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Managed Futures has no effect on the direction of Hennessy i.e., Hennessy and Asg Managed go up and down completely randomly.
Pair Corralation between Hennessy and Asg Managed
Assuming the 90 days horizon Hennessy Bp Energy is expected to generate 1.2 times more return on investment than Asg Managed. However, Hennessy is 1.2 times more volatile than Asg Managed Futures. It trades about 0.04 of its potential returns per unit of risk. Asg Managed Futures is currently generating about -0.05 per unit of risk. If you would invest 2,316 in Hennessy Bp Energy on September 3, 2024 and sell it today you would earn a total of 622.00 from holding Hennessy Bp Energy or generate 26.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Bp Energy vs. Asg Managed Futures
Performance |
| Timeline |
| Hennessy Bp Energy |
| Asg Managed Futures |
Hennessy and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy and Asg Managed
The main advantage of trading using opposite Hennessy and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy position performs unexpectedly, Asg Managed 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 Asg Managed will offset losses from the drop in Asg Managed's long position.| Hennessy vs. Asg Managed Futures | Hennessy vs. Guidepath Managed Futures | Hennessy vs. Goldman Sachs Managed | Hennessy vs. Blackrock Inflation Protected |
| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. American Beacon Ahl |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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