Correlation Between MPC Container and Hafnia
Can any of the company-specific risk be diversified away by investing in both MPC Container 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 MPC Container and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MPC Container Ships and Hafnia Limited, you can compare the effects of market volatilities on MPC Container 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 MPC Container with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of MPC Container and Hafnia.
Diversification Opportunities for MPC Container and Hafnia
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MPC and Hafnia is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding MPC Container Ships and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and MPC Container 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 MPC Container Ships 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 MPC Container i.e., MPC Container and Hafnia go up and down completely randomly.
Pair Corralation between MPC Container and Hafnia
If you would invest 199.00 in MPC Container Ships on September 2, 2024 and sell it today you would earn a total of 0.00 from holding MPC Container Ships or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
MPC Container Ships vs. Hafnia Limited
Performance |
| Timeline |
| MPC Container Ships |
| Hafnia Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MPC Container and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MPC Container and Hafnia
The main advantage of trading using opposite MPC Container and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MPC Container 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.| MPC Container vs. Pacific Basin Shipping | MPC Container vs. Safe Bulkers | MPC Container vs. Hutchison Port Holdings | MPC Container vs. Orient Overseas Limited |
| Hafnia vs. Paltalk | Hafnia vs. Stepan Company | Hafnia vs. Harmony Gold Mining | Hafnia vs. Amkor Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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