Correlation Between Havila Shipping and MPC Container
Can any of the company-specific risk be diversified away by investing in both Havila Shipping and MPC Container 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 MPC Container 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 MPC Container Ships, you can compare the effects of market volatilities on Havila Shipping and MPC Container 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 MPC Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havila Shipping and MPC Container.
Diversification Opportunities for Havila Shipping and MPC Container
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Havila and MPC is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Havila Shipping ASA and MPC Container Ships in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MPC Container Ships 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 MPC Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MPC Container Ships has no effect on the direction of Havila Shipping i.e., Havila Shipping and MPC Container go up and down completely randomly.
Pair Corralation between Havila Shipping and MPC Container
Assuming the 90 days trading horizon Havila Shipping ASA is expected to under-perform the MPC Container. But the stock apears to be less risky and, when comparing its historical volatility, Havila Shipping ASA is 1.07 times less risky than MPC Container. The stock trades about -0.15 of its potential returns per unit of risk. The MPC Container Ships is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,169 in MPC Container Ships on September 1, 2024 and sell it today you would lose (6.00) from holding MPC Container Ships or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Havila Shipping ASA vs. MPC Container Ships
Performance |
| Timeline |
| Havila Shipping ASA |
| MPC Container Ships |
Havila Shipping and MPC Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havila Shipping and MPC Container
The main advantage of trading using opposite Havila Shipping and MPC Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havila Shipping position performs unexpectedly, MPC Container 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 MPC Container will offset losses from the drop in MPC Container's long position.| Havila Shipping vs. Solstad Offsho | Havila Shipping vs. Eidesvik Offshore ASA | Havila Shipping vs. Prosafe SE | Havila Shipping vs. BW Offshore |
| MPC Container vs. Havila Shipping ASA | MPC Container vs. Shelf Drilling | MPC Container vs. Solstad Offsho | MPC Container 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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