Correlation Between Crossamerica Partners and Hafnia
Can any of the company-specific risk be diversified away by investing in both Crossamerica Partners 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 Crossamerica Partners and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crossamerica Partners LP and Hafnia Limited, you can compare the effects of market volatilities on Crossamerica Partners 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 Crossamerica Partners with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crossamerica Partners and Hafnia.
Diversification Opportunities for Crossamerica Partners and Hafnia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Crossamerica and Hafnia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Crossamerica Partners LP and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Crossamerica Partners 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 Crossamerica Partners LP 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 Crossamerica Partners i.e., Crossamerica Partners and Hafnia go up and down completely randomly.
Pair Corralation between Crossamerica Partners and Hafnia
Given the investment horizon of 90 days Crossamerica Partners LP is expected to generate 0.65 times more return on investment than Hafnia. However, Crossamerica Partners LP is 1.53 times less risky than Hafnia. It trades about 0.15 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.04 per unit of risk. If you would invest 2,054 in Crossamerica Partners LP on September 5, 2024 and sell it today you would earn a total of 110.00 from holding Crossamerica Partners LP or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crossamerica Partners LP vs. Hafnia Limited
Performance |
| Timeline |
| Crossamerica Partners |
| Hafnia Limited |
Crossamerica Partners and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crossamerica Partners and Hafnia
The main advantage of trading using opposite Crossamerica Partners and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crossamerica Partners 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.| Crossamerica Partners vs. CVR Energy | Crossamerica Partners vs. PBF Energy | Crossamerica Partners vs. HF Sinclair Corp | Crossamerica Partners vs. Par Pacific Holdings |
| Hafnia vs. USA Compression Partners | Hafnia vs. Dynagas LNG Partners | Hafnia vs. Crossamerica Partners LP | Hafnia vs. Delek Logistics Partners |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |