Correlation Between Hafnia and Vita Coco
Can any of the company-specific risk be diversified away by investing in both Hafnia and Vita Coco 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 Vita Coco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Vita Coco, you can compare the effects of market volatilities on Hafnia and Vita Coco 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 Vita Coco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Vita Coco.
Diversification Opportunities for Hafnia and Vita Coco
Excellent diversification
The 3 months correlation between Hafnia and Vita is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Vita Coco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vita Coco 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 Vita Coco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vita Coco has no effect on the direction of Hafnia i.e., Hafnia and Vita Coco go up and down completely randomly.
Pair Corralation between Hafnia and Vita Coco
Given the investment horizon of 90 days Hafnia Limited is expected to generate 0.55 times more return on investment than Vita Coco. However, Hafnia Limited is 1.82 times less risky than Vita Coco. It trades about -0.09 of its potential returns per unit of risk. Vita Coco is currently generating about -0.16 per unit of risk. If you would invest 512.00 in Hafnia Limited on November 28, 2024 and sell it today you would lose (19.00) from holding Hafnia Limited or give up 3.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hafnia Limited vs. Vita Coco
Performance |
| Timeline |
| Hafnia Limited |
| Vita Coco |
Hafnia and Vita Coco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Vita Coco
The main advantage of trading using opposite Hafnia and Vita Coco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Vita Coco 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 Vita Coco will offset losses from the drop in Vita Coco's long position.| Hafnia vs. Jabil Circuit | Hafnia vs. Maanshan Iron Steel | Hafnia vs. Allegheny Technologies Incorporated | Hafnia vs. Enzyme Environmental Solutions |
| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. Coca Cola European Partners | Vita Coco vs. Embotelladora Andina SA | Vita Coco vs. Monster Beverage Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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