Correlation Between Hafnia and Kawasaki Kisen
Can any of the company-specific risk be diversified away by investing in both Hafnia and Kawasaki Kisen 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 Kawasaki Kisen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Kawasaki Kisen Kaisha, you can compare the effects of market volatilities on Hafnia and Kawasaki Kisen 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 Kawasaki Kisen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Kawasaki Kisen.
Diversification Opportunities for Hafnia and Kawasaki Kisen
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hafnia and Kawasaki is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Kawasaki Kisen Kaisha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kawasaki Kisen Kaisha 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 Kawasaki Kisen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kawasaki Kisen Kaisha has no effect on the direction of Hafnia i.e., Hafnia and Kawasaki Kisen go up and down completely randomly.
Pair Corralation between Hafnia and Kawasaki Kisen
If you would invest 830.00 in Hafnia Limited on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Hafnia Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Hafnia Limited vs. Kawasaki Kisen Kaisha
Performance |
| Timeline |
| Hafnia Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kawasaki Kisen Kaisha |
Hafnia and Kawasaki Kisen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Kawasaki Kisen
The main advantage of trading using opposite Hafnia and Kawasaki Kisen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Kawasaki Kisen 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 Kawasaki Kisen will offset losses from the drop in Kawasaki Kisen's long position.| Hafnia vs. Paltalk | Hafnia vs. Stepan Company | Hafnia vs. Harmony Gold Mining | Hafnia vs. Amkor Technology |
| Kawasaki Kisen vs. Pacific Basin Shipping | Kawasaki Kisen vs. Hapag Lloyd Aktiengesellschaft | Kawasaki Kisen vs. Hapag Lloyd Aktiengesellschaft | Kawasaki Kisen vs. Hutchison Port 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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