Correlation Between Hennessy Japan and Pin Oak
Can any of the company-specific risk be diversified away by investing in both Hennessy Japan and Pin Oak 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 Japan and Pin Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hennessy Japan Small and Pin Oak Equity, you can compare the effects of market volatilities on Hennessy Japan and Pin Oak 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 Japan with a short position of Pin Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy Japan and Pin Oak.
Diversification Opportunities for Hennessy Japan and Pin Oak
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hennessy and Pin is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Japan Small and Pin Oak Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pin Oak Equity and Hennessy Japan 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 Japan Small are associated (or correlated) with Pin Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pin Oak Equity has no effect on the direction of Hennessy Japan i.e., Hennessy Japan and Pin Oak go up and down completely randomly.
Pair Corralation between Hennessy Japan and Pin Oak
Assuming the 90 days horizon Hennessy Japan Small is expected to under-perform the Pin Oak. In addition to that, Hennessy Japan is 2.19 times more volatile than Pin Oak Equity. It trades about -0.13 of its total potential returns per unit of risk. Pin Oak Equity is currently generating about 0.14 per unit of volatility. If you would invest 9,107 in Pin Oak Equity on September 13, 2025 and sell it today you would earn a total of 634.00 from holding Pin Oak Equity or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Japan Small vs. Pin Oak Equity
Performance |
| Timeline |
| Hennessy Japan Small |
| Pin Oak Equity |
Hennessy Japan and Pin Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy Japan and Pin Oak
The main advantage of trading using opposite Hennessy Japan and Pin Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy Japan position performs unexpectedly, Pin Oak 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 Pin Oak will offset losses from the drop in Pin Oak's long position.| Hennessy Japan vs. Ave Maria World | Hennessy Japan vs. Buffalo Mid Cap | Hennessy Japan vs. Riskproreg Dynamic 20 30 | Hennessy Japan vs. Horizon Active Dividend |
| Pin Oak vs. Paradigm Micro Cap Fund | Pin Oak vs. Wesmark Small Pany | Pin Oak vs. T Rowe Price | Pin Oak vs. Needham Small Cap |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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