Correlation Between Hapag-Lloyd and HAMMONIA Schiffsholding
Can any of the company-specific risk be diversified away by investing in both Hapag-Lloyd and HAMMONIA Schiffsholding 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 and HAMMONIA Schiffsholding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hapag Lloyd AG and HAMMONIA Schiffsholding AG, you can compare the effects of market volatilities on Hapag-Lloyd and HAMMONIA Schiffsholding 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 with a short position of HAMMONIA Schiffsholding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hapag-Lloyd and HAMMONIA Schiffsholding.
Diversification Opportunities for Hapag-Lloyd and HAMMONIA Schiffsholding
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hapag-Lloyd and HAMMONIA is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hapag Lloyd AG and HAMMONIA Schiffsholding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAMMONIA Schiffsholding and Hapag-Lloyd 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 AG are associated (or correlated) with HAMMONIA Schiffsholding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAMMONIA Schiffsholding has no effect on the direction of Hapag-Lloyd i.e., Hapag-Lloyd and HAMMONIA Schiffsholding go up and down completely randomly.
Pair Corralation between Hapag-Lloyd and HAMMONIA Schiffsholding
Assuming the 90 days trading horizon Hapag Lloyd AG is expected to under-perform the HAMMONIA Schiffsholding. But the stock apears to be less risky and, when comparing its historical volatility, Hapag Lloyd AG is 1.11 times less risky than HAMMONIA Schiffsholding. The stock trades about -0.16 of its potential returns per unit of risk. The HAMMONIA Schiffsholding AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 27,400 in HAMMONIA Schiffsholding AG on October 13, 2024 and sell it today you would earn a total of 600.00 from holding HAMMONIA Schiffsholding AG or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hapag Lloyd AG vs. HAMMONIA Schiffsholding AG
Performance |
| Timeline |
| Hapag Lloyd AG |
| HAMMONIA Schiffsholding |
Hapag-Lloyd and HAMMONIA Schiffsholding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hapag-Lloyd and HAMMONIA Schiffsholding
The main advantage of trading using opposite Hapag-Lloyd and HAMMONIA Schiffsholding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hapag-Lloyd position performs unexpectedly, HAMMONIA Schiffsholding 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 HAMMONIA Schiffsholding will offset losses from the drop in HAMMONIA Schiffsholding's long position.| Hapag-Lloyd vs. Benchmark Electronics | Hapag-Lloyd vs. ELECTRONIC ARTS | Hapag-Lloyd vs. Richardson Electronics | Hapag-Lloyd vs. Daito Trust Construction |
| HAMMONIA Schiffsholding vs. Nippon Yusen Kabushiki | HAMMONIA Schiffsholding vs. Hapag Lloyd AG | HAMMONIA Schiffsholding vs. Superior Plus Corp | HAMMONIA Schiffsholding vs. NMI Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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