Correlation Between Akanda Corp and Hafnia
Can any of the company-specific risk be diversified away by investing in both Akanda Corp 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 Akanda Corp and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Hafnia Limited, you can compare the effects of market volatilities on Akanda Corp 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 Akanda Corp with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Hafnia.
Diversification Opportunities for Akanda Corp and Hafnia
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Akanda and Hafnia is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Akanda Corp 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 Akanda Corp 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 Akanda Corp i.e., Akanda Corp and Hafnia go up and down completely randomly.
Pair Corralation between Akanda Corp and Hafnia
Given the investment horizon of 90 days Akanda Corp is expected to under-perform the Hafnia. In addition to that, Akanda Corp is 3.86 times more volatile than Hafnia Limited. It trades about -0.06 of its total potential returns per unit of risk. Hafnia Limited is currently generating about 0.0 per unit of volatility. If you would invest 530.00 in Hafnia Limited on November 28, 2024 and sell it today you would lose (40.00) from holding Hafnia Limited or give up 7.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.47% |
| Values | Daily Returns |
Akanda Corp vs. Hafnia Limited
Performance |
| Timeline |
| Akanda Corp |
| Hafnia Limited |
Akanda Corp and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Hafnia
The main advantage of trading using opposite Akanda Corp and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp 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.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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