Correlation Between Havila Shipping and Panoro Energy
Can any of the company-specific risk be diversified away by investing in both Havila Shipping and Panoro Energy 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 Panoro Energy 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 Panoro Energy ASA, you can compare the effects of market volatilities on Havila Shipping and Panoro Energy 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 Panoro Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havila Shipping and Panoro Energy.
Diversification Opportunities for Havila Shipping and Panoro Energy
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Havila and Panoro is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Havila Shipping ASA and Panoro Energy ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panoro Energy ASA 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 Panoro Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panoro Energy ASA has no effect on the direction of Havila Shipping i.e., Havila Shipping and Panoro Energy go up and down completely randomly.
Pair Corralation between Havila Shipping and Panoro Energy
Assuming the 90 days trading horizon Havila Shipping ASA is expected to under-perform the Panoro Energy. In addition to that, Havila Shipping is 2.18 times more volatile than Panoro Energy ASA. It trades about -0.11 of its total potential returns per unit of risk. Panoro Energy ASA is currently generating about -0.01 per unit of volatility. If you would invest 2,821 in Panoro Energy ASA on September 3, 2024 and sell it today you would lose (156.00) from holding Panoro Energy ASA or give up 5.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Havila Shipping ASA vs. Panoro Energy ASA
Performance |
| Timeline |
| Havila Shipping ASA |
| Panoro Energy ASA |
Havila Shipping and Panoro Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havila Shipping and Panoro Energy
The main advantage of trading using opposite Havila Shipping and Panoro Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havila Shipping position performs unexpectedly, Panoro Energy 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 Panoro Energy will offset losses from the drop in Panoro Energy's long position.| Havila Shipping vs. Solstad Offsho | Havila Shipping vs. Eidesvik Offshore ASA | Havila Shipping vs. Prosafe SE | Havila Shipping vs. BW Offshore |
| Panoro Energy vs. BW Energy | Panoro Energy vs. Dno ASA | Panoro Energy vs. BW Offshore | Panoro Energy vs. Okea 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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