Correlation Between Hafnia and Allient
Can any of the company-specific risk be diversified away by investing in both Hafnia and Allient 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 Allient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Allient, you can compare the effects of market volatilities on Hafnia and Allient 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 Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Allient.
Diversification Opportunities for Hafnia and Allient
Good diversification
The 3 months correlation between Hafnia and Allient is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient 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 Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of Hafnia i.e., Hafnia and Allient go up and down completely randomly.
Pair Corralation between Hafnia and Allient
Given the investment horizon of 90 days Hafnia Limited is expected to generate 1.19 times more return on investment than Allient. However, Hafnia is 1.19 times more volatile than Allient. It trades about 0.01 of its potential returns per unit of risk. Allient is currently generating about 0.0 per unit of risk. If you would invest 557.00 in Hafnia Limited on November 7, 2024 and sell it today you would lose (2.00) from holding Hafnia Limited or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hafnia Limited vs. Allient
Performance |
| Timeline |
| Hafnia Limited |
| Allient |
Hafnia and Allient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Allient
The main advantage of trading using opposite Hafnia and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Allient 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 Allient will offset losses from the drop in Allient's long position.| Hafnia vs. Westrock Coffee | Hafnia vs. Ryanair Holdings PLC | Hafnia vs. Alaska Air Group | Hafnia vs. Molson Coors Beverage |
| Allient vs. Hafnia Limited | Allient vs. MYT Netherlands Parent | Allient vs. Jeld Wen Holding | Allient vs. Hudson Technologies |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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