Correlation Between Hafnia and Pico Far
Can any of the company-specific risk be diversified away by investing in both Hafnia and Pico Far 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 Pico Far into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Pico Far East, you can compare the effects of market volatilities on Hafnia and Pico Far 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 Pico Far. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Pico Far.
Diversification Opportunities for Hafnia and Pico Far
Pay attention - limited upside
The 3 months correlation between Hafnia and Pico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Pico Far East in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pico Far East 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 Pico Far. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pico Far East has no effect on the direction of Hafnia i.e., Hafnia and Pico Far go up and down completely randomly.
Pair Corralation between Hafnia and Pico Far
Given the investment horizon of 90 days Hafnia is expected to generate 3.1 times less return on investment than Pico Far. But when comparing it to its historical volatility, Hafnia Limited is 2.07 times less risky than Pico Far. It trades about 0.04 of its potential returns per unit of risk. Pico Far East is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Pico Far East on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Pico Far East or generate 70.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 70.79% |
| Values | Daily Returns |
Hafnia Limited vs. Pico Far East
Performance |
| Timeline |
| Hafnia Limited |
| Pico Far East |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hafnia and Pico Far Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Pico Far
The main advantage of trading using opposite Hafnia and Pico Far positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Pico Far 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 Pico Far will offset losses from the drop in Pico Far's long position.The idea behind Hafnia Limited and Pico Far East 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.| Pico Far vs. United Airlines Holdings | Pico Far vs. Skillful Craftsman Education | Pico Far vs. Hafnia Limited | Pico Far vs. Verra Mobility Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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