Correlation Between Hafnia and MTI WIRELESS
Can any of the company-specific risk be diversified away by investing in both Hafnia and MTI WIRELESS 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 Hafnia and MTI WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and MTI WIRELESS EDGE, you can compare the effects of market volatilities on Hafnia and MTI WIRELESS 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 Hafnia with a short position of MTI WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and MTI WIRELESS.
Diversification Opportunities for Hafnia and MTI WIRELESS
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hafnia and MTI is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and MTI WIRELESS EDGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTI WIRELESS EDGE and Hafnia 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 Hafnia Limited are associated (or correlated) with MTI WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTI WIRELESS EDGE has no effect on the direction of Hafnia i.e., Hafnia and MTI WIRELESS go up and down completely randomly.
Pair Corralation between Hafnia and MTI WIRELESS
Assuming the 90 days horizon Hafnia Limited is expected to generate 2.29 times more return on investment than MTI WIRELESS. However, Hafnia is 2.29 times more volatile than MTI WIRELESS EDGE. It trades about 0.1 of its potential returns per unit of risk. MTI WIRELESS EDGE is currently generating about -0.13 per unit of risk. If you would invest 488.00 in Hafnia Limited on September 5, 2024 and sell it today you would earn a total of 47.00 from holding Hafnia Limited or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hafnia Limited vs. MTI WIRELESS EDGE
Performance |
| Timeline |
| Hafnia Limited |
| MTI WIRELESS EDGE |
Hafnia and MTI WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and MTI WIRELESS
The main advantage of trading using opposite Hafnia and MTI WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, MTI WIRELESS 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 MTI WIRELESS will offset losses from the drop in MTI WIRELESS's long position.| Hafnia vs. MTI WIRELESS EDGE | Hafnia vs. Mobilezone Holding AG | Hafnia vs. CENTURIA OFFICE REIT | Hafnia vs. T MOBILE INCDL 00001 |
| MTI WIRELESS vs. LGI Homes | MTI WIRELESS vs. Aedas Homes SA | MTI WIRELESS vs. Consolidated Communications Holdings | MTI WIRELESS vs. DFS Furniture PLC |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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