Correlation Between Tortoise Energy and Hennessy
Can any of the company-specific risk be diversified away by investing in both Tortoise Energy 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 Tortoise Energy and Hennessy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tortoise Energy Infrastructure and Hennessy Bp Energy, you can compare the effects of market volatilities on Tortoise Energy 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 Tortoise Energy with a short position of Hennessy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tortoise Energy and Hennessy.
Diversification Opportunities for Tortoise Energy and Hennessy
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tortoise and Hennessy is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Tortoise Energy Infrastructure 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 Tortoise Energy 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 Tortoise Energy Infrastructure 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 Tortoise Energy i.e., Tortoise Energy and Hennessy go up and down completely randomly.
Pair Corralation between Tortoise Energy and Hennessy
Assuming the 90 days horizon Tortoise Energy is expected to generate 2.47 times less return on investment than Hennessy. But when comparing it to its historical volatility, Tortoise Energy Infrastructure is 1.18 times less risky than Hennessy. It trades about 0.06 of its potential returns per unit of risk. Hennessy Bp Energy is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,826 in Hennessy Bp Energy on September 3, 2025 and sell it today you would earn a total of 237.00 from holding Hennessy Bp Energy or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tortoise Energy Infrastructure vs. Hennessy Bp Energy
Performance |
| Timeline |
| Tortoise Energy Infr |
| Hennessy Bp Energy |
Tortoise Energy and Hennessy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tortoise Energy and Hennessy
The main advantage of trading using opposite Tortoise Energy and Hennessy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tortoise Energy 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.| Tortoise Energy vs. Columbia Convertible Securities | Tortoise Energy vs. Absolute Convertible Arbitrage | Tortoise Energy vs. Lord Abbett Convertible | Tortoise Energy vs. Fidelity Sai Convertible |
| Hennessy vs. Long Term Government Fund | Hennessy vs. Ridgeworth Seix Government | Hennessy vs. Us Government Securities | Hennessy vs. Intermediate Government Bond |
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 Stocks Directory module to find actively traded stocks across global markets.
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