Correlation Between StealthGas and Hafnia
Can any of the company-specific risk be diversified away by investing in both StealthGas 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 StealthGas and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StealthGas and Hafnia Limited, you can compare the effects of market volatilities on StealthGas 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 StealthGas with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of StealthGas and Hafnia.
Diversification Opportunities for StealthGas and Hafnia
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between StealthGas and Hafnia is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding StealthGas and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and StealthGas 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 StealthGas 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 StealthGas i.e., StealthGas and Hafnia go up and down completely randomly.
Pair Corralation between StealthGas and Hafnia
Given the investment horizon of 90 days StealthGas is expected to generate 0.99 times more return on investment than Hafnia. However, StealthGas is 1.01 times less risky than Hafnia. It trades about 0.07 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.04 per unit of risk. If you would invest 273.00 in StealthGas on August 27, 2024 and sell it today you would earn a total of 332.00 from holding StealthGas or generate 121.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 79.84% |
| Values | Daily Returns |
StealthGas vs. Hafnia Limited
Performance |
| Timeline |
| StealthGas |
| Hafnia Limited |
StealthGas and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StealthGas and Hafnia
The main advantage of trading using opposite StealthGas and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StealthGas 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.| StealthGas vs. Danaos | StealthGas vs. Global Ship Lease | StealthGas vs. Euroseas | StealthGas vs. Navios Maritime Partners |
| Hafnia vs. Iridium Communications | Hafnia vs. Transocean | Hafnia vs. Emerson Radio | Hafnia vs. AKITA Drilling |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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