Correlation Between AP Mller and Hafnia
Can any of the company-specific risk be diversified away by investing in both AP Mller 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 AP Mller and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Mller and Hafnia Limited, you can compare the effects of market volatilities on AP Mller 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 AP Mller with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Hafnia.
Diversification Opportunities for AP Mller and Hafnia
Very weak diversification
The 3 months correlation between AMKBF and Hafnia is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and AP Mller 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 AP Mller 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 AP Mller i.e., AP Mller and Hafnia go up and down completely randomly.
Pair Corralation between AP Mller and Hafnia
If you would invest 147,979 in AP Mller on August 27, 2024 and sell it today you would earn a total of 18,572 from holding AP Mller or generate 12.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
AP Mller vs. Hafnia Limited
Performance |
| Timeline |
| AP Mller |
| Hafnia Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AP Mller and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Hafnia
The main advantage of trading using opposite AP Mller and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller 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.The idea behind AP Mller and Hafnia Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hafnia vs. Codexis | Hafnia vs. Playtika Holding Corp | Hafnia vs. Contagious Gaming | Hafnia vs. Electronic Arts |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |