Correlation Between Boeing and Hafnia
Can any of the company-specific risk be diversified away by investing in both Boeing 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 Boeing and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Hafnia Limited, you can compare the effects of market volatilities on Boeing 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 Boeing with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Hafnia.
Diversification Opportunities for Boeing and Hafnia
Pay attention - limited upside
The 3 months correlation between Boeing and Hafnia is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Boeing 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 The Boeing 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 Boeing i.e., Boeing and Hafnia go up and down completely randomly.
Pair Corralation between Boeing and Hafnia
If you would invest 15,069 in The Boeing on August 28, 2024 and sell it today you would earn a total of 241.00 from holding The Boeing or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Boeing vs. Hafnia Limited
Performance |
| Timeline |
| Boeing |
| Hafnia Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boeing and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Hafnia
The main advantage of trading using opposite Boeing and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing 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 The Boeing 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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