Correlation Between Haffner Energy and Waga Energy
Can any of the company-specific risk be diversified away by investing in both Haffner Energy and Waga Energy 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 Haffner Energy and Waga Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haffner Energy SA and Waga Energy SA, you can compare the effects of market volatilities on Haffner Energy and Waga Energy 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 Haffner Energy with a short position of Waga Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haffner Energy and Waga Energy.
Diversification Opportunities for Haffner Energy and Waga Energy
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haffner and Waga is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Haffner Energy SA and Waga Energy SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waga Energy SA and Haffner 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 Haffner Energy SA are associated (or correlated) with Waga Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waga Energy SA has no effect on the direction of Haffner Energy i.e., Haffner Energy and Waga Energy go up and down completely randomly.
Pair Corralation between Haffner Energy and Waga Energy
Assuming the 90 days trading horizon Haffner Energy SA is expected to generate 2.7 times more return on investment than Waga Energy. However, Haffner Energy is 2.7 times more volatile than Waga Energy SA. It trades about 0.11 of its potential returns per unit of risk. Waga Energy SA is currently generating about -0.17 per unit of risk. If you would invest 89.00 in Haffner Energy SA on November 30, 2024 and sell it today you would earn a total of 15.00 from holding Haffner Energy SA or generate 16.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haffner Energy SA vs. Waga Energy SA
Performance |
| Timeline |
| Haffner Energy SA |
| Waga Energy SA |
Haffner Energy and Waga Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haffner Energy and Waga Energy
The main advantage of trading using opposite Haffner Energy and Waga Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haffner Energy position performs unexpectedly, Waga Energy 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 Waga Energy will offset losses from the drop in Waga Energy's long position.| Haffner Energy vs. Fill Up Media | Haffner Energy vs. Eutelsat Communications SA | Haffner Energy vs. Les Hotels Bav | Haffner Energy vs. Gaztransport Technigaz SAS |
| Waga Energy vs. OVH Groupe SAS | Waga Energy vs. Hydrogene De France | Waga Energy vs. Neoen SA | Waga Energy vs. Haffner Energy SA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |