Correlation Between Havila Shipping and Belships
Can any of the company-specific risk be diversified away by investing in both Havila Shipping and Belships 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 Havila Shipping and Belships into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Havila Shipping ASA and Belships, you can compare the effects of market volatilities on Havila Shipping and Belships 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 Havila Shipping with a short position of Belships. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havila Shipping and Belships.
Diversification Opportunities for Havila Shipping and Belships
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Havila and Belships is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Havila Shipping ASA and Belships in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belships and Havila Shipping 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 Havila Shipping ASA are associated (or correlated) with Belships. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belships has no effect on the direction of Havila Shipping i.e., Havila Shipping and Belships go up and down completely randomly.
Pair Corralation between Havila Shipping and Belships
Assuming the 90 days trading horizon Havila Shipping ASA is expected to under-perform the Belships. In addition to that, Havila Shipping is 2.34 times more volatile than Belships. It trades about -0.03 of its total potential returns per unit of risk. Belships is currently generating about 0.06 per unit of volatility. If you would invest 1,066 in Belships on September 3, 2024 and sell it today you would earn a total of 754.00 from holding Belships or generate 70.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Havila Shipping ASA vs. Belships
Performance |
| Timeline |
| Havila Shipping ASA |
| Belships |
Havila Shipping and Belships Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havila Shipping and Belships
The main advantage of trading using opposite Havila Shipping and Belships positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havila Shipping position performs unexpectedly, Belships 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 Belships will offset losses from the drop in Belships' long position.| Havila Shipping vs. Solstad Offsho | Havila Shipping vs. Eidesvik Offshore ASA | Havila Shipping vs. Prosafe SE | Havila Shipping vs. BW Offshore |
| Belships vs. Goodtech | Belships vs. Nordic Technology Group | Belships vs. Napatech AS | Belships vs. Instabank 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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