Correlation Between Hafnia and Flagstar Bancorp
Can any of the company-specific risk be diversified away by investing in both Hafnia and Flagstar Bancorp 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 Flagstar Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Flagstar Bancorp, you can compare the effects of market volatilities on Hafnia and Flagstar Bancorp 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 Flagstar Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Flagstar Bancorp.
Diversification Opportunities for Hafnia and Flagstar Bancorp
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hafnia and Flagstar is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Flagstar Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flagstar Bancorp 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 Flagstar Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flagstar Bancorp has no effect on the direction of Hafnia i.e., Hafnia and Flagstar Bancorp go up and down completely randomly.
Pair Corralation between Hafnia and Flagstar Bancorp
If you would invest 521.00 in Hafnia Limited on September 4, 2024 and sell it today you would earn a total of 60.00 from holding Hafnia Limited or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.41% |
| Values | Daily Returns |
Hafnia Limited vs. Flagstar Bancorp
Performance |
| Timeline |
| Hafnia Limited |
| Flagstar Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hafnia and Flagstar Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Flagstar Bancorp
The main advantage of trading using opposite Hafnia and Flagstar Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Flagstar Bancorp 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 Flagstar Bancorp will offset losses from the drop in Flagstar Bancorp's long position.| Hafnia vs. Axalta Coating Systems | Hafnia vs. NL Industries | Hafnia vs. Chemours Co | Hafnia vs. CVR Partners LP |
| Flagstar Bancorp vs. Hafnia Limited | Flagstar Bancorp vs. TFI International | Flagstar Bancorp vs. Lindblad Expeditions Holdings | Flagstar Bancorp vs. Summit Materials |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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