Correlation Between 2020 Bulkers and Hafnia
Can any of the company-specific risk be diversified away by investing in both 2020 Bulkers and Hafnia 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 2020 Bulkers and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2020 Bulkers and Hafnia, you can compare the effects of market volatilities on 2020 Bulkers and Hafnia 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 2020 Bulkers with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2020 Bulkers and Hafnia.
Diversification Opportunities for 2020 Bulkers and Hafnia
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between 2020 and Hafnia is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding 2020 Bulkers and Hafnia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia and 2020 Bulkers 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 2020 Bulkers are associated (or correlated) with Hafnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hafnia has no effect on the direction of 2020 Bulkers i.e., 2020 Bulkers and Hafnia go up and down completely randomly.
Pair Corralation between 2020 Bulkers and Hafnia
Assuming the 90 days trading horizon 2020 Bulkers is expected to under-perform the Hafnia. But the stock apears to be less risky and, when comparing its historical volatility, 2020 Bulkers is 1.58 times less risky than Hafnia. The stock trades about -0.18 of its potential returns per unit of risk. The Hafnia is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 6,475 in Hafnia on November 3, 2024 and sell it today you would lose (490.00) from holding Hafnia or give up 7.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
2020 Bulkers vs. Hafnia
Performance |
| Timeline |
| 2020 Bulkers |
| Hafnia |
2020 Bulkers and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2020 Bulkers and Hafnia
The main advantage of trading using opposite 2020 Bulkers and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2020 Bulkers position performs unexpectedly, Hafnia 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 Hafnia will offset losses from the drop in Hafnia's long position.| 2020 Bulkers vs. Okeanis Eco Tankers | 2020 Bulkers vs. MPC Container Ships | 2020 Bulkers vs. Belships | 2020 Bulkers vs. Hafnia |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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