Correlation Between Voya Intermediate and Hennessy
Can any of the company-specific risk be diversified away by investing in both Voya Intermediate and Hennessy 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 Voya Intermediate and Hennessy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Intermediate Bond and Hennessy Bp Energy, you can compare the effects of market volatilities on Voya Intermediate and Hennessy 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 Voya Intermediate with a short position of Hennessy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Intermediate and Hennessy.
Diversification Opportunities for Voya Intermediate and Hennessy
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Voya and Hennessy is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Voya Intermediate Bond and Hennessy Bp Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hennessy Bp Energy and Voya Intermediate 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 Voya Intermediate Bond are associated (or correlated) with Hennessy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hennessy Bp Energy has no effect on the direction of Voya Intermediate i.e., Voya Intermediate and Hennessy go up and down completely randomly.
Pair Corralation between Voya Intermediate and Hennessy
Assuming the 90 days horizon Voya Intermediate Bond is expected to under-perform the Hennessy. But the mutual fund apears to be less risky and, when comparing its historical volatility, Voya Intermediate Bond is 4.29 times less risky than Hennessy. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Hennessy Bp Energy is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,267 in Hennessy Bp Energy on September 4, 2024 and sell it today you would earn a total of 605.00 from holding Hennessy Bp Energy or generate 26.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 6.28% |
| Values | Daily Returns |
Voya Intermediate Bond vs. Hennessy Bp Energy
Performance |
| Timeline |
| Voya Intermediate Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hennessy Bp Energy |
Voya Intermediate and Hennessy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Intermediate and Hennessy
The main advantage of trading using opposite Voya Intermediate and Hennessy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Intermediate position performs unexpectedly, Hennessy 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 Hennessy will offset losses from the drop in Hennessy's long position.| Voya Intermediate vs. Great West Goldman Sachs | Voya Intermediate vs. Franklin Gold Precious | Voya Intermediate vs. Goldman Sachs Short | Voya Intermediate vs. Gold And Precious |
| Hennessy vs. World Energy Fund | Hennessy vs. Ivy Energy Fund | Hennessy vs. Blackrock All Cap Energy | Hennessy vs. Energy Fund Class |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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