Correlation Between Hafnia and Illumin Holdings
Can any of the company-specific risk be diversified away by investing in both Hafnia and Illumin Holdings 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 Illumin Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and illumin Holdings, you can compare the effects of market volatilities on Hafnia and Illumin Holdings 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 Illumin Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Illumin Holdings.
Diversification Opportunities for Hafnia and Illumin Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hafnia and Illumin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and illumin Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on illumin Holdings 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 Illumin Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of illumin Holdings has no effect on the direction of Hafnia i.e., Hafnia and Illumin Holdings go up and down completely randomly.
Pair Corralation between Hafnia and Illumin Holdings
If you would invest 499.00 in Hafnia Limited on September 12, 2024 and sell it today you would earn a total of 47.00 from holding Hafnia Limited or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hafnia Limited vs. illumin Holdings
Performance |
| Timeline |
| Hafnia Limited |
| illumin Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hafnia and Illumin Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Illumin Holdings
The main advantage of trading using opposite Hafnia and Illumin Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Illumin Holdings 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 Illumin Holdings will offset losses from the drop in Illumin Holdings' long position.The idea behind Hafnia Limited and illumin Holdings 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.| Illumin Holdings vs. Xponential Fitness | Illumin Holdings vs. NiSource | Illumin Holdings vs. Playtika Holding Corp | Illumin Holdings vs. Canlan Ice Sports |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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