Correlation Between Hafnia and Granite Falls
Can any of the company-specific risk be diversified away by investing in both Hafnia and Granite Falls 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 Granite Falls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Granite Falls Energy, you can compare the effects of market volatilities on Hafnia and Granite Falls 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 Granite Falls. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Granite Falls.
Diversification Opportunities for Hafnia and Granite Falls
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hafnia and Granite is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Granite Falls Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Falls Energy 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 Granite Falls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Falls Energy has no effect on the direction of Hafnia i.e., Hafnia and Granite Falls go up and down completely randomly.
Pair Corralation between Hafnia and Granite Falls
Given the investment horizon of 90 days Hafnia Limited is expected to under-perform the Granite Falls. In addition to that, Hafnia is 1.76 times more volatile than Granite Falls Energy. It trades about -0.12 of its total potential returns per unit of risk. Granite Falls Energy is currently generating about -0.06 per unit of volatility. If you would invest 337,500 in Granite Falls Energy on September 1, 2024 and sell it today you would lose (37,500) from holding Granite Falls Energy or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Hafnia Limited vs. Granite Falls Energy
Performance |
| Timeline |
| Hafnia Limited |
| Granite Falls Energy |
Hafnia and Granite Falls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Granite Falls
The main advantage of trading using opposite Hafnia and Granite Falls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Granite Falls 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 Granite Falls will offset losses from the drop in Granite Falls' long position.| Hafnia vs. Fidus Investment Corp | Hafnia vs. BTB Real Estate | Hafnia vs. JBG SMITH Properties | Hafnia vs. Aegon NV ADR |
| Granite Falls vs. European Wax Center | Granite Falls vs. Lincoln Electric Holdings | Granite Falls vs. Ardelyx | Granite Falls vs. Mink Therapeutics |
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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