Correlation Between Hafnia and Klaveness Combination
Can any of the company-specific risk be diversified away by investing in both Hafnia and Klaveness Combination 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 Klaveness Combination into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hafnia and Klaveness Combination Carriers, you can compare the effects of market volatilities on Hafnia and Klaveness Combination 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 Klaveness Combination. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Klaveness Combination.
Diversification Opportunities for Hafnia and Klaveness Combination
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hafnia and Klaveness is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia and Klaveness Combination Carriers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klaveness Combination 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 are associated (or correlated) with Klaveness Combination. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klaveness Combination has no effect on the direction of Hafnia i.e., Hafnia and Klaveness Combination go up and down completely randomly.
Pair Corralation between Hafnia and Klaveness Combination
Assuming the 90 days trading horizon Hafnia is expected to under-perform the Klaveness Combination. In addition to that, Hafnia is 1.15 times more volatile than Klaveness Combination Carriers. It trades about -0.11 of its total potential returns per unit of risk. Klaveness Combination Carriers is currently generating about -0.08 per unit of volatility. If you would invest 9,605 in Klaveness Combination Carriers on September 1, 2024 and sell it today you would lose (1,695) from holding Klaveness Combination Carriers or give up 17.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.24% |
| Values | Daily Returns |
Hafnia vs. Klaveness Combination Carriers
Performance |
| Timeline |
| Hafnia |
| Klaveness Combination |
Hafnia and Klaveness Combination Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hafnia and Klaveness Combination
The main advantage of trading using opposite Hafnia and Klaveness Combination positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Klaveness Combination 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 Klaveness Combination will offset losses from the drop in Klaveness Combination's long position.| Hafnia vs. Havila Shipping ASA | Hafnia vs. Shelf Drilling | Hafnia vs. Solstad Offsho | Hafnia vs. Eidesvik Offshore ASA |
| Klaveness Combination vs. Nidaros Sparebank | Klaveness Combination vs. Odfjell Technology | Klaveness Combination vs. Morrow Bank ASA | Klaveness Combination vs. Lea Bank ASA |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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