Correlation Between Joint Corp and Hafnia
Can any of the company-specific risk be diversified away by investing in both Joint Corp and Hafnia 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 Joint Corp and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Joint Corp and Hafnia Limited, you can compare the effects of market volatilities on Joint Corp and Hafnia 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 Joint Corp with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Corp and Hafnia.
Diversification Opportunities for Joint Corp and Hafnia
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Joint and Hafnia is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding The Joint Corp and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Joint Corp 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 The Joint Corp are associated (or correlated) with Hafnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hafnia Limited has no effect on the direction of Joint Corp i.e., Joint Corp and Hafnia go up and down completely randomly.
Pair Corralation between Joint Corp and Hafnia
Given the investment horizon of 90 days The Joint Corp is expected to generate 1.18 times more return on investment than Hafnia. However, Joint Corp is 1.18 times more volatile than Hafnia Limited. It trades about 0.07 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.05 per unit of risk. If you would invest 1,110 in The Joint Corp on September 5, 2024 and sell it today you would earn a total of 45.00 from holding The Joint Corp or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Joint Corp vs. Hafnia Limited
Performance |
| Timeline |
| Joint Corp |
| Hafnia Limited |
Joint Corp and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joint Corp and Hafnia
The main advantage of trading using opposite Joint Corp and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joint Corp position performs unexpectedly, Hafnia 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 Hafnia will offset losses from the drop in Hafnia's long position.| Joint Corp vs. Encompass Health Corp | Joint Corp vs. Pennant Group | Joint Corp vs. Enhabit | Joint Corp vs. ModivCare |
| Hafnia vs. USA Compression Partners | Hafnia vs. Dynagas LNG Partners | Hafnia vs. Crossamerica Partners LP | Hafnia vs. Delek Logistics Partners |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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