Correlation Between Havsfrun Investment and HAKI Safety
Can any of the company-specific risk be diversified away by investing in both Havsfrun Investment and HAKI Safety 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 Havsfrun Investment and HAKI Safety into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Havsfrun Investment AB and HAKI Safety A, you can compare the effects of market volatilities on Havsfrun Investment and HAKI Safety 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 Havsfrun Investment with a short position of HAKI Safety. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havsfrun Investment and HAKI Safety.
Diversification Opportunities for Havsfrun Investment and HAKI Safety
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Havsfrun and HAKI is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Havsfrun Investment AB and HAKI Safety A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAKI Safety A and Havsfrun Investment 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 Havsfrun Investment AB are associated (or correlated) with HAKI Safety. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAKI Safety A has no effect on the direction of Havsfrun Investment i.e., Havsfrun Investment and HAKI Safety go up and down completely randomly.
Pair Corralation between Havsfrun Investment and HAKI Safety
Assuming the 90 days trading horizon Havsfrun Investment is expected to generate 5.65 times less return on investment than HAKI Safety. But when comparing it to its historical volatility, Havsfrun Investment AB is 1.09 times less risky than HAKI Safety. It trades about 0.0 of its potential returns per unit of risk. HAKI Safety A is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,595 in HAKI Safety A on September 3, 2024 and sell it today you would earn a total of 285.00 from holding HAKI Safety A or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Havsfrun Investment AB vs. HAKI Safety A
Performance |
| Timeline |
| Havsfrun Investment |
| HAKI Safety A |
Havsfrun Investment and HAKI Safety Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havsfrun Investment and HAKI Safety
The main advantage of trading using opposite Havsfrun Investment and HAKI Safety positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havsfrun Investment position performs unexpectedly, HAKI Safety 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 HAKI Safety will offset losses from the drop in HAKI Safety's long position.| Havsfrun Investment vs. NAXS Nordic Access | Havsfrun Investment vs. FormPipe Software AB | Havsfrun Investment vs. Novotek AB |
| HAKI Safety vs. AstraZeneca PLC | HAKI Safety vs. Investor AB ser | HAKI Safety vs. Investor AB ser | HAKI Safety vs. Atlas Copco AB |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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