Correlation Between Dominos Pizza and Hafnia
Can any of the company-specific risk be diversified away by investing in both Dominos Pizza 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 Dominos Pizza and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dominos Pizza Group and Hafnia Limited, you can compare the effects of market volatilities on Dominos Pizza 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 Dominos Pizza with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dominos Pizza and Hafnia.
Diversification Opportunities for Dominos Pizza and Hafnia
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dominos and Hafnia is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Dominos Pizza Group and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Dominos Pizza 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 Dominos Pizza Group 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 Dominos Pizza i.e., Dominos Pizza and Hafnia go up and down completely randomly.
Pair Corralation between Dominos Pizza and Hafnia
If you would invest 412.00 in Dominos Pizza Group on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Dominos Pizza Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Dominos Pizza Group vs. Hafnia Limited
Performance |
| Timeline |
| Dominos Pizza Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hafnia Limited |
Dominos Pizza and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dominos Pizza and Hafnia
The main advantage of trading using opposite Dominos Pizza and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dominos Pizza 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.| Dominos Pizza vs. Hafnia Limited | Dominos Pizza vs. Nexstar Broadcasting Group | Dominos Pizza vs. Yuexiu Transport Infrastructure | Dominos Pizza vs. NH Foods Ltd |
| Hafnia vs. Triton International Limited | Hafnia vs. Avis Budget Group | Hafnia vs. Videolocity International | Hafnia vs. Xponential Fitness |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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