Correlation Between Hafnia and Dominos Pizza
Can any of the company-specific risk be diversified away by investing in both Hafnia and Dominos Pizza 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 Dominos Pizza into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Dominos Pizza Group, you can compare the effects of market volatilities on Hafnia and Dominos Pizza 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 Dominos Pizza. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Dominos Pizza.
Diversification Opportunities for Hafnia and Dominos Pizza
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hafnia and Dominos is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Dominos Pizza Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dominos Pizza Group 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 Dominos Pizza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dominos Pizza Group has no effect on the direction of Hafnia i.e., Hafnia and Dominos Pizza go up and down completely randomly.
Pair Corralation between Hafnia and Dominos Pizza
Given the investment horizon of 90 days Hafnia is expected to generate 1.07 times less return on investment than Dominos Pizza. But when comparing it to its historical volatility, Hafnia Limited is 1.31 times less risky than Dominos Pizza. It trades about 0.04 of its potential returns per unit of risk. Dominos Pizza Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 346.00 in Dominos Pizza Group on September 3, 2024 and sell it today you would earn a total of 66.00 from holding Dominos Pizza Group or generate 19.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 67.68% |
| Values | Daily Returns |
Hafnia Limited vs. Dominos Pizza Group
Performance |
| Timeline |
| Hafnia Limited |
| Dominos Pizza Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hafnia and Dominos Pizza Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Dominos Pizza
The main advantage of trading using opposite Hafnia and Dominos Pizza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Dominos Pizza 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 Dominos Pizza will offset losses from the drop in Dominos Pizza's long position.| Hafnia vs. Triton International Limited | Hafnia vs. Avis Budget Group | Hafnia vs. Videolocity International | Hafnia vs. Xponential Fitness |
| Dominos Pizza vs. Hafnia Limited | Dominos Pizza vs. Nexstar Broadcasting Group | Dominos Pizza vs. Yuexiu Transport Infrastructure | Dominos Pizza vs. NH Foods Ltd |
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.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |