Correlation Between Hafnia and Skillful Craftsman
Can any of the company-specific risk be diversified away by investing in both Hafnia and Skillful Craftsman 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 Skillful Craftsman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Skillful Craftsman Education, you can compare the effects of market volatilities on Hafnia and Skillful Craftsman 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 Skillful Craftsman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Skillful Craftsman.
Diversification Opportunities for Hafnia and Skillful Craftsman
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hafnia and Skillful is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Skillful Craftsman Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skillful Craftsman 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 Skillful Craftsman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skillful Craftsman has no effect on the direction of Hafnia i.e., Hafnia and Skillful Craftsman go up and down completely randomly.
Pair Corralation between Hafnia and Skillful Craftsman
Given the investment horizon of 90 days Hafnia Limited is expected to generate 0.59 times more return on investment than Skillful Craftsman. However, Hafnia Limited is 1.69 times less risky than Skillful Craftsman. It trades about -0.01 of its potential returns per unit of risk. Skillful Craftsman Education is currently generating about -0.01 per unit of risk. If you would invest 606.00 in Hafnia Limited on August 25, 2024 and sell it today you would lose (52.00) from holding Hafnia Limited or give up 8.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.56% |
| Values | Daily Returns |
Hafnia Limited vs. Skillful Craftsman Education
Performance |
| Timeline |
| Hafnia Limited |
| Skillful Craftsman |
Hafnia and Skillful Craftsman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Skillful Craftsman
The main advantage of trading using opposite Hafnia and Skillful Craftsman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Skillful Craftsman 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 Skillful Craftsman will offset losses from the drop in Skillful Craftsman's long position.| Hafnia vs. Brandywine Realty Trust | Hafnia vs. LB Foster | Hafnia vs. Kite Realty Group | Hafnia vs. China Tontine Wines |
| Skillful Craftsman vs. Wah Fu Education | Skillful Craftsman vs. Golden Sun Education | Skillful Craftsman vs. Elite Education Group | Skillful Craftsman vs. QuantaSing Group 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |