Correlation Between Hafnia and Mitsui OSK
Can any of the company-specific risk be diversified away by investing in both Hafnia and Mitsui OSK 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 Mitsui OSK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia Limited and Mitsui OSK Lines, you can compare the effects of market volatilities on Hafnia and Mitsui OSK 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 Mitsui OSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Mitsui OSK.
Diversification Opportunities for Hafnia and Mitsui OSK
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hafnia and Mitsui is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Mitsui OSK Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsui OSK Lines 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 Mitsui OSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsui OSK Lines has no effect on the direction of Hafnia i.e., Hafnia and Mitsui OSK go up and down completely randomly.
Pair Corralation between Hafnia and Mitsui OSK
If you would invest 1,655 in Mitsui OSK Lines on August 24, 2024 and sell it today you would earn a total of 92.00 from holding Mitsui OSK Lines or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hafnia Limited vs. Mitsui OSK Lines
Performance |
| Timeline |
| Hafnia Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mitsui OSK Lines |
Hafnia and Mitsui OSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Mitsui OSK
The main advantage of trading using opposite Hafnia and Mitsui OSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Mitsui OSK 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 Mitsui OSK will offset losses from the drop in Mitsui OSK's long position.| Hafnia vs. Keurig Dr Pepper | Hafnia vs. Diageo PLC ADR | Hafnia vs. Micron Technology | Hafnia vs. Anheuser Busch Inbev |
| Mitsui OSK vs. SITC International Holdings | Mitsui OSK vs. Orient Overseas Limited | Mitsui OSK vs. Western Bulk Chartering | Mitsui OSK vs. Hapag Lloyd Aktiengesellschaft |
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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