Correlation Between Hennessy and Inflation Protected
Can any of the company-specific risk be diversified away by investing in both Hennessy and Inflation Protected 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 Inflation Protected 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 Inflation Protected Bond Fund, you can compare the effects of market volatilities on Hennessy and Inflation Protected 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 Inflation Protected. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy and Inflation Protected.
Diversification Opportunities for Hennessy and Inflation Protected
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hennessy and Inflation is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Bp Energy and Inflation Protected Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Protected 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 Inflation Protected. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Protected has no effect on the direction of Hennessy i.e., Hennessy and Inflation Protected go up and down completely randomly.
Pair Corralation between Hennessy and Inflation Protected
Assuming the 90 days horizon Hennessy Bp Energy is expected to generate 2.38 times more return on investment than Inflation Protected. However, Hennessy is 2.38 times more volatile than Inflation Protected Bond Fund. It trades about 0.12 of its potential returns per unit of risk. Inflation Protected Bond Fund is currently generating about 0.02 per unit of risk. If you would invest 3,007 in Hennessy Bp Energy on September 10, 2025 and sell it today you would earn a total of 83.00 from holding Hennessy Bp Energy or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Bp Energy vs. Inflation Protected Bond Fund
Performance |
| Timeline |
| Hennessy Bp Energy |
| Inflation Protected |
Hennessy and Inflation Protected Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy and Inflation Protected
The main advantage of trading using opposite Hennessy and Inflation Protected positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy position performs unexpectedly, Inflation Protected 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 Inflation Protected will offset losses from the drop in Inflation Protected's long position.| Hennessy vs. Ashmore Emerging Markets | Hennessy vs. Ashmore Emerging Markets | Hennessy vs. Hennessy Balanced Fund | Hennessy vs. iShares Trust |
| Inflation Protected vs. Franklin Mutual Global | Inflation Protected vs. Qs Moderate Growth | Inflation Protected vs. Pnc Balanced Allocation | Inflation Protected vs. Guidemark Large 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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