Correlation Between Hafnia and Occidental
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By analyzing existing cross correlation between Hafnia Limited and Occidental Petroleum 645, you can compare the effects of market volatilities on Hafnia and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Occidental.
Diversification Opportunities for Hafnia and Occidental
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hafnia and Occidental is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Occidental Petroleum 645 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 645 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum 645 has no effect on the direction of Hafnia i.e., Hafnia and Occidental go up and down completely randomly.
Pair Corralation between Hafnia and Occidental
Given the investment horizon of 90 days Hafnia Limited is expected to generate about the same return on investment as Occidental Petroleum 645. However, Hafnia is 3.72 times more volatile than Occidental Petroleum 645. It trades about 0.01 of its potential returns per unit of risk. Occidental Petroleum 645 is currently producing about 0.05 per unit of risk. If you would invest 10,361 in Occidental Petroleum 645 on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Occidental Petroleum 645 or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hafnia Limited vs. Occidental Petroleum 645
Performance |
| Timeline |
| Hafnia Limited |
| Occidental Petroleum 645 |
Hafnia and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Occidental
The main advantage of trading using opposite Hafnia and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| Hafnia vs. Triton International Limited | Hafnia vs. Avis Budget Group | Hafnia vs. Videolocity International | Hafnia vs. Xponential Fitness |
| Occidental vs. Aquestive Therapeutics | Occidental vs. Grocery Outlet Holding | Occidental vs. Merit Medical Systems | Occidental vs. Cumberland Pharmaceuticals |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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