Correlation Between Hennessy Small and Franklin
Can any of the company-specific risk be diversified away by investing in both Hennessy Small and Franklin 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 Small and Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hennessy Small Cap and Franklin Government Money, you can compare the effects of market volatilities on Hennessy Small and Franklin 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 Small with a short position of Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hennessy Small and Franklin.
Diversification Opportunities for Hennessy Small and Franklin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hennessy and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hennessy Small Cap and Franklin Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money and Hennessy Small 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 Small Cap are associated (or correlated) with Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Hennessy Small i.e., Hennessy Small and Franklin go up and down completely randomly.
Pair Corralation between Hennessy Small and Franklin
If you would invest 2,520 in Hennessy Small Cap on June 6, 2025 and sell it today you would earn a total of 403.00 from holding Hennessy Small Cap or generate 15.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hennessy Small Cap vs. Franklin Government Money
Performance |
| Timeline |
| Hennessy Small Cap |
| Franklin Government Money |
Hennessy Small and Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hennessy Small and Franklin
The main advantage of trading using opposite Hennessy Small and Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hennessy Small position performs unexpectedly, Franklin 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 Franklin will offset losses from the drop in Franklin's long position.| Hennessy Small vs. Hennessy Large Cap | Hennessy Small vs. Rmb Mendon Financial | Hennessy Small vs. Hennessy Focus Fund | Hennessy Small vs. Rmb Mendon Financial |
| Franklin vs. L Abbett Growth | Franklin vs. Transamerica Asset Allocation | Franklin vs. Principal Lifetime Hybrid | Franklin vs. T Rowe Price |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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