Correlation Between Alta Global and Hafnia
Can any of the company-specific risk be diversified away by investing in both Alta Global 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 Alta Global and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alta Global Group and Hafnia Limited, you can compare the effects of market volatilities on Alta Global 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 Alta Global with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alta Global and Hafnia.
Diversification Opportunities for Alta Global and Hafnia
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Alta and Hafnia is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Alta Global Group and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Alta Global 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 Alta Global Group 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 Alta Global i.e., Alta Global and Hafnia go up and down completely randomly.
Pair Corralation between Alta Global and Hafnia
Considering the 90-day investment horizon Alta Global Group is expected to under-perform the Hafnia. In addition to that, Alta Global is 1.97 times more volatile than Hafnia Limited. It trades about -0.23 of its total potential returns per unit of risk. Hafnia Limited is currently generating about -0.04 per unit of volatility. If you would invest 581.00 in Hafnia Limited on September 1, 2024 and sell it today you would lose (17.00) from holding Hafnia Limited or give up 2.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alta Global Group vs. Hafnia Limited
Performance |
| Timeline |
| Alta Global Group |
| Hafnia Limited |
Alta Global and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alta Global and Hafnia
The main advantage of trading using opposite Alta Global and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alta Global 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.| Alta Global vs. Hafnia Limited | Alta Global vs. Mattel Inc | Alta Global vs. Playtech plc | Alta Global vs. Old Dominion Freight |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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