Correlation Between Hafnia and CaliberCos
Can any of the company-specific risk be diversified away by investing in both Hafnia and CaliberCos 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 CaliberCos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and CaliberCos Class A, you can compare the effects of market volatilities on Hafnia and CaliberCos 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 CaliberCos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and CaliberCos.
Diversification Opportunities for Hafnia and CaliberCos
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hafnia and CaliberCos is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and CaliberCos Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CaliberCos Class A 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 CaliberCos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CaliberCos Class A has no effect on the direction of Hafnia i.e., Hafnia and CaliberCos go up and down completely randomly.
Pair Corralation between Hafnia and CaliberCos
Given the investment horizon of 90 days Hafnia Limited is expected to generate 0.53 times more return on investment than CaliberCos. However, Hafnia Limited is 1.9 times less risky than CaliberCos. It trades about 0.04 of its potential returns per unit of risk. CaliberCos Class A is currently generating about -0.09 per unit of risk. If you would invest 411.00 in Hafnia Limited on September 5, 2024 and sell it today you would earn a total of 170.00 from holding Hafnia Limited or generate 41.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.24% |
| Values | Daily Returns |
Hafnia Limited vs. CaliberCos Class A
Performance |
| Timeline |
| Hafnia Limited |
| CaliberCos Class A |
Hafnia and CaliberCos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and CaliberCos
The main advantage of trading using opposite Hafnia and CaliberCos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, CaliberCos 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 CaliberCos will offset losses from the drop in CaliberCos' long position.| Hafnia vs. USA Compression Partners | Hafnia vs. Dynagas LNG Partners | Hafnia vs. Crossamerica Partners LP | Hafnia vs. Delek Logistics Partners |
| CaliberCos vs. Hudson Pacific Properties | CaliberCos vs. Bassett Furniture Industries | CaliberCos vs. Apogee Enterprises | CaliberCos vs. Hafnia Limited |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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