Correlation Between Hennessy Technology and Fidelity Sai
Can any of the company-specific risk be diversified away by investing in both Hennessy Technology and Fidelity Sai 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 Technology and Fidelity Sai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hennessy Technology Fund and Fidelity Sai Convertible, you can compare the effects of market volatilities on Hennessy Technology and Fidelity Sai 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 Technology with a short position of Fidelity Sai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy Technology and Fidelity Sai.
Diversification Opportunities for Hennessy Technology and Fidelity Sai
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hennessy and Fidelity is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Technology Fund and Fidelity Sai Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Convertible and Hennessy Technology 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 Technology Fund are associated (or correlated) with Fidelity Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Convertible has no effect on the direction of Hennessy Technology i.e., Hennessy Technology and Fidelity Sai go up and down completely randomly.
Pair Corralation between Hennessy Technology and Fidelity Sai
Assuming the 90 days horizon Hennessy Technology Fund is expected to generate 13.57 times more return on investment than Fidelity Sai. However, Hennessy Technology is 13.57 times more volatile than Fidelity Sai Convertible. It trades about 0.09 of its potential returns per unit of risk. Fidelity Sai Convertible is currently generating about 0.35 per unit of risk. If you would invest 2,283 in Hennessy Technology Fund on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Hennessy Technology Fund or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Technology Fund vs. Fidelity Sai Convertible
Performance |
| Timeline |
| Hennessy Technology |
| Fidelity Sai Convertible |
Hennessy Technology and Fidelity Sai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy Technology and Fidelity Sai
The main advantage of trading using opposite Hennessy Technology and Fidelity Sai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy Technology position performs unexpectedly, Fidelity Sai 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 Fidelity Sai will offset losses from the drop in Fidelity Sai's long position.| Hennessy Technology vs. Black Oak Emerging | Hennessy Technology vs. Hennessy Large Cap | Hennessy Technology vs. Hennessy Japan Fund | Hennessy Technology vs. Hennessy Small Cap |
| Fidelity Sai vs. Fidelity Freedom 2015 | Fidelity Sai vs. Fidelity Puritan Fund | Fidelity Sai vs. Fidelity Puritan Fund | Fidelity Sai vs. Fidelity Pennsylvania Municipal |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |