Correlation Between Hapag-Lloyd Aktiengesellscha and Safe Bulkers
Can any of the company-specific risk be diversified away by investing in both Hapag-Lloyd Aktiengesellscha and Safe Bulkers 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 Aktiengesellscha and Safe Bulkers 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 Safe Bulkers, you can compare the effects of market volatilities on Hapag-Lloyd Aktiengesellscha and Safe Bulkers 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 Aktiengesellscha with a short position of Safe Bulkers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hapag-Lloyd Aktiengesellscha and Safe Bulkers.
Diversification Opportunities for Hapag-Lloyd Aktiengesellscha and Safe Bulkers
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hapag-Lloyd and Safe is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hapag Lloyd Aktiengesellschaft and Safe Bulkers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe Bulkers and Hapag-Lloyd Aktiengesellscha 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 Safe Bulkers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe Bulkers has no effect on the direction of Hapag-Lloyd Aktiengesellscha i.e., Hapag-Lloyd Aktiengesellscha and Safe Bulkers go up and down completely randomly.
Pair Corralation between Hapag-Lloyd Aktiengesellscha and Safe Bulkers
Assuming the 90 days horizon Hapag Lloyd Aktiengesellschaft is expected to generate 18.34 times more return on investment than Safe Bulkers. However, Hapag-Lloyd Aktiengesellscha is 18.34 times more volatile than Safe Bulkers. It trades about 0.05 of its potential returns per unit of risk. Safe Bulkers is currently generating about 0.08 per unit of risk. If you would invest 15,050 in Hapag Lloyd Aktiengesellschaft on September 2, 2024 and sell it today you would earn a total of 1,125 from holding Hapag Lloyd Aktiengesellschaft or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.24% |
| Values | Daily Returns |
Hapag Lloyd Aktiengesellschaft vs. Safe Bulkers
Performance |
| Timeline |
| Hapag-Lloyd Aktiengesellscha |
| Safe Bulkers |
Hapag-Lloyd Aktiengesellscha and Safe Bulkers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hapag-Lloyd Aktiengesellscha and Safe Bulkers
The main advantage of trading using opposite Hapag-Lloyd Aktiengesellscha and Safe Bulkers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hapag-Lloyd Aktiengesellscha position performs unexpectedly, Safe Bulkers 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 Safe Bulkers will offset losses from the drop in Safe Bulkers' long position.| Hapag-Lloyd Aktiengesellscha vs. AP Mller | Hapag-Lloyd Aktiengesellscha vs. COSCO SHIPPING Holdings | Hapag-Lloyd Aktiengesellscha vs. Orient Overseas Limited |
| Safe Bulkers vs. Safe Bulkers | Safe Bulkers vs. Global Ship Lease | Safe Bulkers vs. Diana Shipping | Safe Bulkers vs. Costamare |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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