Correlation Between Hafnia and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Hafnia and Apogee Enterprises 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 Apogee Enterprises into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Apogee Enterprises, you can compare the effects of market volatilities on Hafnia and Apogee Enterprises 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 Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Apogee Enterprises.
Diversification Opportunities for Hafnia and Apogee Enterprises
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hafnia and Apogee is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises 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 Apogee Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Enterprises has no effect on the direction of Hafnia i.e., Hafnia and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Hafnia and Apogee Enterprises
Given the investment horizon of 90 days Hafnia Limited is expected to under-perform the Apogee Enterprises. In addition to that, Hafnia is 1.37 times more volatile than Apogee Enterprises. It trades about -0.01 of its total potential returns per unit of risk. Apogee Enterprises is currently generating about 0.25 per unit of volatility. If you would invest 7,671 in Apogee Enterprises on September 4, 2024 and sell it today you would earn a total of 767.00 from holding Apogee Enterprises or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hafnia Limited vs. Apogee Enterprises
Performance |
| Timeline |
| Hafnia Limited |
| Apogee Enterprises |
Hafnia and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Apogee Enterprises
The main advantage of trading using opposite Hafnia and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Apogee Enterprises 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 Apogee Enterprises will offset losses from the drop in Apogee Enterprises' long position.| Hafnia vs. Axalta Coating Systems | Hafnia vs. NL Industries | Hafnia vs. Chemours Co | Hafnia vs. CVR Partners LP |
| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |