Correlation Between CENTURIA OFFICE and Hafnia
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE 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 CENTURIA OFFICE and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CENTURIA OFFICE REIT and Hafnia Limited, you can compare the effects of market volatilities on CENTURIA OFFICE 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 CENTURIA OFFICE with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and Hafnia.
Diversification Opportunities for CENTURIA OFFICE and Hafnia
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CENTURIA and Hafnia is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and CENTURIA OFFICE 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 CENTURIA OFFICE REIT 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 Limited has no effect on the direction of CENTURIA OFFICE i.e., CENTURIA OFFICE and Hafnia go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and Hafnia
Assuming the 90 days horizon CENTURIA OFFICE is expected to generate 7.9 times less return on investment than Hafnia. But when comparing it to its historical volatility, CENTURIA OFFICE REIT is 4.66 times less risky than Hafnia. It trades about 0.06 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. 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 | 95.65% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. Hafnia Limited
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| Hafnia Limited |
CENTURIA OFFICE and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and Hafnia
The main advantage of trading using opposite CENTURIA OFFICE and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE 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.| CENTURIA OFFICE vs. G III Apparel Group | CENTURIA OFFICE vs. MYFAIR GOLD P | CENTURIA OFFICE vs. TITANIUM TRANSPORTGROUP | CENTURIA OFFICE vs. NTG Nordic Transport |
| Hafnia vs. MTI WIRELESS EDGE | Hafnia vs. Mobilezone Holding AG | Hafnia vs. CENTURIA OFFICE REIT | Hafnia vs. T MOBILE INCDL 00001 |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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