Correlation Between Havila Shipping and Klaveness Combination
Can any of the company-specific risk be diversified away by investing in both Havila Shipping 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 Havila Shipping and Klaveness Combination 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 Klaveness Combination Carriers, you can compare the effects of market volatilities on Havila Shipping 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 Havila Shipping with a short position of Klaveness Combination. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havila Shipping and Klaveness Combination.
Diversification Opportunities for Havila Shipping and Klaveness Combination
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Havila and Klaveness is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Havila Shipping ASA and Klaveness Combination Carriers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klaveness Combination 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 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 Havila Shipping i.e., Havila Shipping and Klaveness Combination go up and down completely randomly.
Pair Corralation between Havila Shipping and Klaveness Combination
Assuming the 90 days trading horizon Havila Shipping ASA is expected to under-perform the Klaveness Combination. In addition to that, Havila Shipping is 2.73 times more volatile than Klaveness Combination Carriers. It trades about -0.04 of its total potential returns per unit of risk. Klaveness Combination Carriers is currently generating about 0.05 per unit of volatility. If you would invest 4,809 in Klaveness Combination Carriers on September 12, 2024 and sell it today you would earn a total of 2,521 from holding Klaveness Combination Carriers or generate 52.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Havila Shipping ASA vs. Klaveness Combination Carriers
Performance |
| Timeline |
| Havila Shipping ASA |
| Klaveness Combination |
Havila Shipping and Klaveness Combination Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havila Shipping and Klaveness Combination
The main advantage of trading using opposite Havila Shipping and Klaveness Combination positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havila Shipping 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.| Havila Shipping vs. Solstad Offsho | Havila Shipping vs. Prosafe SE | Havila Shipping vs. BW Offshore | Havila Shipping vs. Kongsberg Gruppen ASA |
| Klaveness Combination vs. Havila Shipping ASA | Klaveness Combination vs. Shelf Drilling | Klaveness Combination vs. Solstad Offsho | Klaveness Combination vs. Eidesvik Offshore 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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