Correlation Between Hafnia and GP Act
Can any of the company-specific risk be diversified away by investing in both Hafnia and GP Act 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 GP Act into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and GP Act III Acquisition, you can compare the effects of market volatilities on Hafnia and GP Act 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 GP Act. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and GP Act.
Diversification Opportunities for Hafnia and GP Act
Good diversification
The 3 months correlation between Hafnia and GPAT is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and GP Act III Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GP Act III 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 GP Act. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GP Act III has no effect on the direction of Hafnia i.e., Hafnia and GP Act go up and down completely randomly.
Pair Corralation between Hafnia and GP Act
Given the investment horizon of 90 days Hafnia Limited is expected to under-perform the GP Act. In addition to that, Hafnia is 5.13 times more volatile than GP Act III Acquisition. It trades about -0.09 of its total potential returns per unit of risk. GP Act III Acquisition is currently generating about 0.11 per unit of volatility. If you would invest 1,020 in GP Act III Acquisition on November 28, 2024 and sell it today you would earn a total of 8.00 from holding GP Act III Acquisition or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hafnia Limited vs. GP Act III Acquisition
Performance |
| Timeline |
| Hafnia Limited |
| GP Act III |
Hafnia and GP Act Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and GP Act
The main advantage of trading using opposite Hafnia and GP Act positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, GP Act 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 GP Act will offset losses from the drop in GP Act's long position.| Hafnia vs. Jabil Circuit | Hafnia vs. Maanshan Iron Steel | Hafnia vs. Allegheny Technologies Incorporated | Hafnia vs. Enzyme Environmental Solutions |
| GP Act vs. Rocky Brands | GP Act vs. FitLife Brands, Common | GP Act vs. Fomento Economico Mexicano | GP Act vs. SunOpta |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |