Correlation Between Link Real and Hafnia
Can any of the company-specific risk be diversified away by investing in both Link Real 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 Link Real and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Link Real Estate and Hafnia Limited, you can compare the effects of market volatilities on Link Real 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 Link Real with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Link Real and Hafnia.
Diversification Opportunities for Link Real and Hafnia
Very good diversification
The 3 months correlation between Link and Hafnia is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Link Real Estate and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Link Real 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 Link Real Estate 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 Link Real i.e., Link Real and Hafnia go up and down completely randomly.
Pair Corralation between Link Real and Hafnia
Assuming the 90 days horizon Link Real Estate is expected to generate 1.61 times more return on investment than Hafnia. However, Link Real is 1.61 times more volatile than Hafnia Limited. It trades about 0.18 of its potential returns per unit of risk. Hafnia Limited is currently generating about -0.09 per unit of risk. If you would invest 414.00 in Link Real Estate on November 29, 2024 and sell it today you would earn a total of 44.00 from holding Link Real Estate or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Link Real Estate vs. Hafnia Limited
Performance |
| Timeline |
| Link Real Estate |
| Hafnia Limited |
Link Real and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Link Real and Hafnia
The main advantage of trading using opposite Link Real and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Link Real 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.| Link Real vs. Kimco Realty | Link Real vs. Simon Property Group | Link Real vs. Saul Centers | Link Real vs. Kimco Realty |
| Hafnia vs. RCI Hospitality Holdings | Hafnia vs. McDonalds | Hafnia vs. nLIGHT Inc | Hafnia vs. Braemar Hotels Resorts |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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