Correlation Between Hapag Lloyd and Kawasaki Kisen
Can any of the company-specific risk be diversified away by investing in both Hapag Lloyd and Kawasaki Kisen 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 Kawasaki Kisen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hapag Lloyd Aktiengesellschaft and Kawasaki Kisen Kaisha, you can compare the effects of market volatilities on Hapag Lloyd and Kawasaki Kisen 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 Kawasaki Kisen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hapag Lloyd and Kawasaki Kisen.
Diversification Opportunities for Hapag Lloyd and Kawasaki Kisen
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hapag and Kawasaki is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hapag Lloyd Aktiengesellschaft and Kawasaki Kisen Kaisha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kawasaki Kisen Kaisha 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 Aktiengesellschaft are associated (or correlated) with Kawasaki Kisen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kawasaki Kisen Kaisha has no effect on the direction of Hapag Lloyd i.e., Hapag Lloyd and Kawasaki Kisen go up and down completely randomly.
Pair Corralation between Hapag Lloyd and Kawasaki Kisen
Assuming the 90 days horizon Hapag Lloyd Aktiengesellschaft is expected to generate 1.65 times more return on investment than Kawasaki Kisen. However, Hapag Lloyd is 1.65 times more volatile than Kawasaki Kisen Kaisha. It trades about 0.02 of its potential returns per unit of risk. Kawasaki Kisen Kaisha is currently generating about -0.11 per unit of risk. If you would invest 16,710 in Hapag Lloyd Aktiengesellschaft on September 14, 2024 and sell it today you would earn a total of 63.00 from holding Hapag Lloyd Aktiengesellschaft or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hapag Lloyd Aktiengesellschaft vs. Kawasaki Kisen Kaisha
Performance |
| Timeline |
| Hapag Lloyd Aktienge |
| Kawasaki Kisen Kaisha |
Hapag Lloyd and Kawasaki Kisen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hapag Lloyd and Kawasaki Kisen
The main advantage of trading using opposite Hapag Lloyd and Kawasaki Kisen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hapag Lloyd position performs unexpectedly, Kawasaki Kisen 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 Kawasaki Kisen will offset losses from the drop in Kawasaki Kisen's long position.| Hapag Lloyd vs. AP Moeller Maersk AS | Hapag Lloyd vs. Nippon Yusen Kabushiki | Hapag Lloyd vs. COSCO SHIPPING Holdings | Hapag Lloyd vs. AP Moeller |
| Kawasaki Kisen vs. Pacific Basin Shipping | Kawasaki Kisen vs. Hapag Lloyd Aktiengesellschaft | Kawasaki Kisen vs. Hapag Lloyd Aktiengesellschaft | Kawasaki Kisen vs. Hutchison Port 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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