Correlation Between Hennessy Nerstone and Catalyst/warrington
Can any of the company-specific risk be diversified away by investing in both Hennessy Nerstone and Catalyst/warrington 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 Nerstone and Catalyst/warrington into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hennessy Nerstone Mid and Catalystwarrington Strategic Program, you can compare the effects of market volatilities on Hennessy Nerstone and Catalyst/warrington 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 Nerstone with a short position of Catalyst/warrington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy Nerstone and Catalyst/warrington.
Diversification Opportunities for Hennessy Nerstone and Catalyst/warrington
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hennessy and Catalyst/warrington is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Nerstone Mid and Catalystwarrington Strategic P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/warrington and Hennessy Nerstone 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 Nerstone Mid are associated (or correlated) with Catalyst/warrington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/warrington has no effect on the direction of Hennessy Nerstone i.e., Hennessy Nerstone and Catalyst/warrington go up and down completely randomly.
Pair Corralation between Hennessy Nerstone and Catalyst/warrington
Assuming the 90 days horizon Hennessy Nerstone Mid is expected to generate 4.52 times more return on investment than Catalyst/warrington. However, Hennessy Nerstone is 4.52 times more volatile than Catalystwarrington Strategic Program. It trades about 0.02 of its potential returns per unit of risk. Catalystwarrington Strategic Program is currently generating about -0.03 per unit of risk. If you would invest 2,287 in Hennessy Nerstone Mid on August 29, 2025 and sell it today you would earn a total of 24.00 from holding Hennessy Nerstone Mid or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Nerstone Mid vs. Catalystwarrington Strategic P
Performance |
| Timeline |
| Hennessy Nerstone Mid |
| Catalyst/warrington |
Hennessy Nerstone and Catalyst/warrington Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy Nerstone and Catalyst/warrington
The main advantage of trading using opposite Hennessy Nerstone and Catalyst/warrington positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy Nerstone position performs unexpectedly, Catalyst/warrington 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 Catalyst/warrington will offset losses from the drop in Catalyst/warrington's long position.| Hennessy Nerstone vs. Hennessy Nerstone Growth | Hennessy Nerstone vs. Hennessy Nerstone Value | Hennessy Nerstone vs. Hennessy Nerstone Mid | Hennessy Nerstone vs. Hennessy Large Cap |
| Catalyst/warrington vs. Gamco International Growth | Catalyst/warrington vs. Eip Growth And | Catalyst/warrington vs. Qs Growth Fund | Catalyst/warrington vs. Auer Growth Fund |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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