Correlation Between Hafnia and Thermodynetics

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Can any of the company-specific risk be diversified away by investing in both Hafnia and Thermodynetics 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 Thermodynetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Thermodynetics, you can compare the effects of market volatilities on Hafnia and Thermodynetics 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 Thermodynetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Thermodynetics.

Diversification Opportunities for Hafnia and Thermodynetics

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Hafnia and Thermodynetics is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Thermodynetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermodynetics 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 Thermodynetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermodynetics has no effect on the direction of Hafnia i.e., Hafnia and Thermodynetics go up and down completely randomly.

Pair Corralation between Hafnia and Thermodynetics

If you would invest  0.00  in Thermodynetics on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Thermodynetics or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Hafnia Limited  vs.  Thermodynetics

 Performance 
       Timeline  
Hafnia Limited 

Risk-Adjusted Performance

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Over the last 90 days Hafnia Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
Thermodynetics 

Risk-Adjusted Performance

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Over the last 90 days Thermodynetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Thermodynetics is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Hafnia and Thermodynetics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hafnia and Thermodynetics

The main advantage of trading using opposite Hafnia and Thermodynetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Thermodynetics 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 Thermodynetics will offset losses from the drop in Thermodynetics' long position.
The idea behind Hafnia Limited and Thermodynetics 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.
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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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