Correlation Between Yuexiu Transport and Hafnia
Can any of the company-specific risk be diversified away by investing in both Yuexiu Transport 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 Yuexiu Transport and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yuexiu Transport Infrastructure and Hafnia Limited, you can compare the effects of market volatilities on Yuexiu Transport 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 Yuexiu Transport with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuexiu Transport and Hafnia.
Diversification Opportunities for Yuexiu Transport and Hafnia
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yuexiu and Hafnia is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Yuexiu Transport Infrastructur and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Yuexiu Transport 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 Yuexiu Transport Infrastructure 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 Yuexiu Transport i.e., Yuexiu Transport and Hafnia go up and down completely randomly.
Pair Corralation between Yuexiu Transport and Hafnia
Assuming the 90 days horizon Yuexiu Transport Infrastructure is expected to generate 1.43 times more return on investment than Hafnia. However, Yuexiu Transport is 1.43 times more volatile than Hafnia Limited. It trades about 0.11 of its potential returns per unit of risk. Hafnia Limited is currently generating about -0.03 per unit of risk. If you would invest 32.00 in Yuexiu Transport Infrastructure on August 28, 2024 and sell it today you would earn a total of 26.00 from holding Yuexiu Transport Infrastructure or generate 81.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuexiu Transport Infrastructur vs. Hafnia Limited
Performance |
| Timeline |
| Yuexiu Transport Inf |
| Hafnia Limited |
Yuexiu Transport and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuexiu Transport and Hafnia
The main advantage of trading using opposite Yuexiu Transport and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuexiu Transport 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.| Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Jiangsu Expressway Co | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Verra Mobility Corp |
| Hafnia vs. The Gap, | Hafnia vs. Boot Barn Holdings | Hafnia vs. National Beverage Corp | Hafnia vs. Kontoor Brands |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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