Correlation Between HAPAG-LLOYD UNSPADR and BW LPG
Can any of the company-specific risk be diversified away by investing in both HAPAG-LLOYD UNSPADR and BW LPG 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 HAPAG-LLOYD UNSPADR and BW LPG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAPAG LLOYD UNSPADR 12 and BW LPG Limited, you can compare the effects of market volatilities on HAPAG-LLOYD UNSPADR and BW LPG 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 HAPAG-LLOYD UNSPADR with a short position of BW LPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAPAG-LLOYD UNSPADR and BW LPG.
Diversification Opportunities for HAPAG-LLOYD UNSPADR and BW LPG
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between HAPAG-LLOYD and BW9 is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding HAPAG LLOYD UNSPADR 12 and BW LPG Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW LPG Limited and HAPAG-LLOYD UNSPADR 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 HAPAG LLOYD UNSPADR 12 are associated (or correlated) with BW LPG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW LPG Limited has no effect on the direction of HAPAG-LLOYD UNSPADR i.e., HAPAG-LLOYD UNSPADR and BW LPG go up and down completely randomly.
Pair Corralation between HAPAG-LLOYD UNSPADR and BW LPG
Assuming the 90 days trading horizon HAPAG LLOYD UNSPADR 12 is expected to under-perform the BW LPG. In addition to that, HAPAG-LLOYD UNSPADR is 1.23 times more volatile than BW LPG Limited. It trades about -0.22 of its total potential returns per unit of risk. BW LPG Limited is currently generating about 0.6 per unit of volatility. If you would invest 971.00 in BW LPG Limited on October 20, 2024 and sell it today you would earn a total of 276.00 from holding BW LPG Limited or generate 28.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
HAPAG LLOYD UNSPADR 12 vs. BW LPG Limited
Performance |
| Timeline |
| HAPAG LLOYD UNSPADR |
| BW LPG Limited |
HAPAG-LLOYD UNSPADR and BW LPG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAPAG-LLOYD UNSPADR and BW LPG
The main advantage of trading using opposite HAPAG-LLOYD UNSPADR and BW LPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAPAG-LLOYD UNSPADR position performs unexpectedly, BW LPG 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 BW LPG will offset losses from the drop in BW LPG's long position.| HAPAG-LLOYD UNSPADR vs. AP Mller | HAPAG-LLOYD UNSPADR vs. ZIM Integrated Shipping | HAPAG-LLOYD UNSPADR vs. DFDS AS | HAPAG-LLOYD UNSPADR vs. Pacific Basin Shipping |
| BW LPG vs. AP Mller | BW LPG vs. HAPAG LLOYD UNSPADR 12 | BW LPG vs. ZIM Integrated Shipping | BW LPG vs. DFDS AS |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |