Correlation Between Hafnia and 191216CE8
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By analyzing existing cross correlation between Hafnia Limited and COCA A 29, you can compare the effects of market volatilities on Hafnia and 191216CE8 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 191216CE8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and 191216CE8.
Diversification Opportunities for Hafnia and 191216CE8
Poor diversification
The 3 months correlation between Hafnia and 191216CE8 is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and COCA A 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A 29 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 191216CE8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A 29 has no effect on the direction of Hafnia i.e., Hafnia and 191216CE8 go up and down completely randomly.
Pair Corralation between Hafnia and 191216CE8
Given the investment horizon of 90 days Hafnia Limited is expected to generate 5.45 times more return on investment than 191216CE8. However, Hafnia is 5.45 times more volatile than COCA A 29. It trades about 0.03 of its potential returns per unit of risk. COCA A 29 is currently generating about -0.02 per unit of risk. If you would invest 521.00 in Hafnia Limited on September 4, 2024 and sell it today you would earn a total of 60.00 from holding Hafnia Limited or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.72% |
| Values | Daily Returns |
Hafnia Limited vs. COCA A 29
Performance |
| Timeline |
| Hafnia Limited |
| COCA A 29 |
Hafnia and 191216CE8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and 191216CE8
The main advantage of trading using opposite Hafnia and 191216CE8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, 191216CE8 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 191216CE8 will offset losses from the drop in 191216CE8's long position.| Hafnia vs. Axalta Coating Systems | Hafnia vs. NL Industries | Hafnia vs. Chemours Co | Hafnia vs. CVR Partners LP |
| 191216CE8 vs. The Travelers Companies | 191216CE8 vs. GE Aerospace | 191216CE8 vs. Walmart | 191216CE8 vs. Pfizer Inc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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