Correlation Between Hafnia and Societatea Energetica
Can any of the company-specific risk be diversified away by investing in both Hafnia and Societatea Energetica 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 Societatea Energetica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Societatea Energetica Electrica, you can compare the effects of market volatilities on Hafnia and Societatea Energetica 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 Societatea Energetica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Societatea Energetica.
Diversification Opportunities for Hafnia and Societatea Energetica
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hafnia and Societatea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Societatea Energetica Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Societatea Energetica 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 Societatea Energetica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Societatea Energetica has no effect on the direction of Hafnia i.e., Hafnia and Societatea Energetica go up and down completely randomly.
Pair Corralation between Hafnia and Societatea Energetica
If you would invest (100.00) in Societatea Energetica Electrica on November 3, 2024 and sell it today you would earn a total of 100.00 from holding Societatea Energetica Electrica or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hafnia Limited vs. Societatea Energetica Electric
Performance |
| Timeline |
| Hafnia Limited |
| Societatea Energetica |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hafnia and Societatea Energetica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Societatea Energetica
The main advantage of trading using opposite Hafnia and Societatea Energetica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Societatea Energetica 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 Societatea Energetica will offset losses from the drop in Societatea Energetica's long position.The idea behind Hafnia Limited and Societatea Energetica Electrica pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Societatea Energetica vs. Target Hospitality Corp | Societatea Energetica vs. Boyd Gaming | Societatea Energetica vs. Paysafe | Societatea Energetica vs. Asure Software |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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