Correlation Between HAV Group and Havila Shipping
Can any of the company-specific risk be diversified away by investing in both HAV Group and Havila Shipping 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 HAV Group and Havila Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAV Group ASA and Havila Shipping ASA, you can compare the effects of market volatilities on HAV Group and Havila Shipping 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 HAV Group with a short position of Havila Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAV Group and Havila Shipping.
Diversification Opportunities for HAV Group and Havila Shipping
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HAV and Havila is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding HAV Group ASA and Havila Shipping ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Havila Shipping ASA and HAV Group 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 HAV Group ASA are associated (or correlated) with Havila Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Havila Shipping ASA has no effect on the direction of HAV Group i.e., HAV Group and Havila Shipping go up and down completely randomly.
Pair Corralation between HAV Group and Havila Shipping
Assuming the 90 days trading horizon HAV Group ASA is expected to generate 0.52 times more return on investment than Havila Shipping. However, HAV Group ASA is 1.91 times less risky than Havila Shipping. It trades about -0.01 of its potential returns per unit of risk. Havila Shipping ASA is currently generating about -0.04 per unit of risk. If you would invest 859.00 in HAV Group ASA on September 3, 2024 and sell it today you would lose (233.00) from holding HAV Group ASA or give up 27.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAV Group ASA vs. Havila Shipping ASA
Performance |
| Timeline |
| HAV Group ASA |
| Havila Shipping ASA |
HAV Group and Havila Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAV Group and Havila Shipping
The main advantage of trading using opposite HAV Group and Havila Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAV Group position performs unexpectedly, Havila Shipping 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 Havila Shipping will offset losses from the drop in Havila Shipping's long position.| HAV Group vs. Sogn Sparebank | HAV Group vs. Instabank ASA | HAV Group vs. SD Standard Drilling | HAV Group vs. Shelf Drilling |
| Havila Shipping vs. Solstad Offsho | Havila Shipping vs. Eidesvik Offshore ASA | Havila Shipping vs. Prosafe SE | Havila Shipping vs. BW Offshore |
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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