Correlation Between Daily Journal and Hafnia
Can any of the company-specific risk be diversified away by investing in both Daily Journal 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 Daily Journal and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daily Journal Corp and Hafnia Limited, you can compare the effects of market volatilities on Daily Journal 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 Daily Journal with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daily Journal and Hafnia.
Diversification Opportunities for Daily Journal and Hafnia
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Daily and Hafnia is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Daily Journal Corp and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Daily Journal 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 Daily Journal Corp 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 Daily Journal i.e., Daily Journal and Hafnia go up and down completely randomly.
Pair Corralation between Daily Journal and Hafnia
Given the investment horizon of 90 days Daily Journal Corp is expected to generate 1.2 times more return on investment than Hafnia. However, Daily Journal is 1.2 times more volatile than Hafnia Limited. It trades about 0.1 of its potential returns per unit of risk. Hafnia Limited is currently generating about -0.01 per unit of risk. If you would invest 34,082 in Daily Journal Corp on August 25, 2024 and sell it today you would earn a total of 23,666 from holding Daily Journal Corp or generate 69.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.56% |
| Values | Daily Returns |
Daily Journal Corp vs. Hafnia Limited
Performance |
| Timeline |
| Daily Journal Corp |
| Hafnia Limited |
Daily Journal and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daily Journal and Hafnia
The main advantage of trading using opposite Daily Journal and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daily Journal 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.| Daily Journal vs. Meridianlink | Daily Journal vs. CoreCard Corp | Daily Journal vs. Enfusion | Daily Journal vs. Issuer Direct Corp |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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