Correlation Between China Tontine and Hafnia
Can any of the company-specific risk be diversified away by investing in both China Tontine 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 China Tontine and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Tontine Wines and Hafnia Limited, you can compare the effects of market volatilities on China Tontine 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 China Tontine with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Tontine and Hafnia.
Diversification Opportunities for China Tontine and Hafnia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Hafnia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Tontine Wines and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and China Tontine 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 China Tontine Wines 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 China Tontine i.e., China Tontine and Hafnia go up and down completely randomly.
Pair Corralation between China Tontine and Hafnia
If you would invest 7.10 in China Tontine Wines on August 25, 2024 and sell it today you would earn a total of 0.00 from holding China Tontine Wines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Tontine Wines vs. Hafnia Limited
Performance |
| Timeline |
| China Tontine Wines |
| Hafnia Limited |
China Tontine and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Tontine and Hafnia
The main advantage of trading using opposite China Tontine and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Tontine 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.| China Tontine vs. Diageo PLC ADR | China Tontine vs. Constellation Brands Class | China Tontine vs. Morningstar Unconstrained Allocation | China Tontine vs. SEI Investments |
| Hafnia vs. Brandywine Realty Trust | Hafnia vs. LB Foster | Hafnia vs. Kite Realty Group | Hafnia vs. China Tontine Wines |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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