Correlation Between Gap, and Hafnia
Can any of the company-specific risk be diversified away by investing in both Gap, 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 Gap, and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gap, and Hafnia Limited, you can compare the effects of market volatilities on Gap, 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 Gap, with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and Hafnia.
Diversification Opportunities for Gap, and Hafnia
Very good diversification
The 3 months correlation between Gap, and Hafnia is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Gap, 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 Gap, 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 Gap, i.e., Gap, and Hafnia go up and down completely randomly.
Pair Corralation between Gap, and Hafnia
Considering the 90-day investment horizon The Gap, is expected to generate 1.5 times more return on investment than Hafnia. However, Gap, is 1.5 times more volatile than Hafnia Limited. It trades about 0.09 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.06 per unit of risk. If you would invest 893.00 in The Gap, on August 31, 2024 and sell it today you would earn a total of 1,532 from holding The Gap, or generate 171.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.44% |
| Values | Daily Returns |
The Gap, vs. Hafnia Limited
Performance |
| Timeline |
| Gap, |
| Hafnia Limited |
Gap, and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and Hafnia
The main advantage of trading using opposite Gap, and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, 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.| Gap, vs. SEI Investments | Gap, vs. Corporacion America Airports | Gap, vs. Nasdaq Inc | Gap, vs. Sabra Healthcare REIT |
| Hafnia vs. Comstock Holding Companies | Hafnia vs. SEI Investments | Hafnia vs. Chester Mining | Hafnia vs. Link Real Estate |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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