Correlation Between Hafnia and EDVLN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hafnia Limited and EDVLN 5 14 OCT 26, you can compare the effects of market volatilities on Hafnia and EDVLN 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 EDVLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and EDVLN.
Diversification Opportunities for Hafnia and EDVLN
Poor diversification
The 3 months correlation between Hafnia and EDVLN is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and EDVLN 5 14 OCT 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDVLN 5 14 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 EDVLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDVLN 5 14 has no effect on the direction of Hafnia i.e., Hafnia and EDVLN go up and down completely randomly.
Pair Corralation between Hafnia and EDVLN
Given the investment horizon of 90 days Hafnia is expected to generate 1.12 times less return on investment than EDVLN. In addition to that, Hafnia is 2.42 times more volatile than EDVLN 5 14 OCT 26. It trades about 0.04 of its total potential returns per unit of risk. EDVLN 5 14 OCT 26 is currently generating about 0.12 per unit of volatility. If you would invest 8,565 in EDVLN 5 14 OCT 26 on September 3, 2024 and sell it today you would earn a total of 1,210 from holding EDVLN 5 14 OCT 26 or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 25.76% |
| Values | Daily Returns |
Hafnia Limited vs. EDVLN 5 14 OCT 26
Performance |
| Timeline |
| Hafnia Limited |
| EDVLN 5 14 |
Hafnia and EDVLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and EDVLN
The main advantage of trading using opposite Hafnia and EDVLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, EDVLN 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 EDVLN will offset losses from the drop in EDVLN's long position.| Hafnia vs. Triton International Limited | Hafnia vs. Avis Budget Group | Hafnia vs. Videolocity International | Hafnia vs. Xponential Fitness |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |