Correlation Between Hafnia and Tscan Therapeutics
Can any of the company-specific risk be diversified away by investing in both Hafnia and Tscan Therapeutics 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 Tscan Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Tscan Therapeutics, you can compare the effects of market volatilities on Hafnia and Tscan Therapeutics 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 Tscan Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Tscan Therapeutics.
Diversification Opportunities for Hafnia and Tscan Therapeutics
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hafnia and Tscan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Tscan Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tscan Therapeutics 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 Tscan Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tscan Therapeutics has no effect on the direction of Hafnia i.e., Hafnia and Tscan Therapeutics go up and down completely randomly.
Pair Corralation between Hafnia and Tscan Therapeutics
Given the investment horizon of 90 days Hafnia Limited is expected to generate 0.56 times more return on investment than Tscan Therapeutics. However, Hafnia Limited is 1.79 times less risky than Tscan Therapeutics. It trades about -0.01 of its potential returns per unit of risk. Tscan Therapeutics is currently generating about -0.02 per unit of risk. If you would invest 569.00 in Hafnia Limited on September 4, 2024 and sell it today you would lose (6.00) from holding Hafnia Limited or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hafnia Limited vs. Tscan Therapeutics
Performance |
| Timeline |
| Hafnia Limited |
| Tscan Therapeutics |
Hafnia and Tscan Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Tscan Therapeutics
The main advantage of trading using opposite Hafnia and Tscan Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Tscan Therapeutics 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 Tscan Therapeutics will offset losses from the drop in Tscan Therapeutics' long position.| Hafnia vs. Axalta Coating Systems | Hafnia vs. NL Industries | Hafnia vs. Chemours Co | Hafnia vs. CVR Partners LP |
| Tscan Therapeutics vs. Candel Therapeutics | Tscan Therapeutics vs. Cingulate Warrants | Tscan Therapeutics vs. Unicycive Therapeutics | Tscan Therapeutics vs. Cardio Diagnostics Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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