Correlation Between Hafnia and ACG Metals
Can any of the company-specific risk be diversified away by investing in both Hafnia and ACG Metals 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 Hafnia and ACG Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and ACG Metals Limited, you can compare the effects of market volatilities on Hafnia and ACG Metals 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 Hafnia with a short position of ACG Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and ACG Metals.
Diversification Opportunities for Hafnia and ACG Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hafnia and ACG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and ACG Metals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACG Metals Limited and Hafnia 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 Hafnia Limited are associated (or correlated) with ACG Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACG Metals Limited has no effect on the direction of Hafnia i.e., Hafnia and ACG Metals go up and down completely randomly.
Pair Corralation between Hafnia and ACG Metals
If you would invest 1,650 in ACG Metals Limited on November 27, 2024 and sell it today you would earn a total of 0.00 from holding ACG Metals Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hafnia Limited vs. ACG Metals Limited
Performance |
| Timeline |
| Hafnia Limited |
| ACG Metals Limited |
Hafnia and ACG Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and ACG Metals
The main advantage of trading using opposite Hafnia and ACG Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, ACG Metals 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 ACG Metals will offset losses from the drop in ACG Metals' long position.| Hafnia vs. Addus HomeCare | Hafnia vs. Zoom Video Communications | Hafnia vs. Enlight Renewable Energy | Hafnia vs. Live Ventures |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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