Correlation Between Mitsui OSK and Hafnia
Can any of the company-specific risk be diversified away by investing in both Mitsui OSK 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 Mitsui OSK and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsui OSK Lines and Hafnia Limited, you can compare the effects of market volatilities on Mitsui OSK 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 Mitsui OSK with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsui OSK and Hafnia.
Diversification Opportunities for Mitsui OSK and Hafnia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mitsui and Hafnia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mitsui OSK Lines and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Mitsui OSK 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 Mitsui OSK Lines 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 Mitsui OSK i.e., Mitsui OSK and Hafnia go up and down completely randomly.
Pair Corralation between Mitsui OSK and Hafnia
If you would invest (100.00) in Hafnia Limited on January 18, 2025 and sell it today you would earn a total of 100.00 from holding Hafnia Limited or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsui OSK Lines vs. Hafnia Limited
Performance |
| Timeline |
| Mitsui OSK Lines |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Hafnia Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Mitsui OSK and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsui OSK and Hafnia
The main advantage of trading using opposite Mitsui OSK and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsui OSK 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.| Mitsui OSK vs. Mitsui OSK Lines | Mitsui OSK vs. SITC International Holdings | Mitsui OSK vs. Orient Overseas Limited | Mitsui OSK vs. Western Bulk Chartering |
| Hafnia vs. Joint Stock | Hafnia vs. NetSol Technologies | Hafnia vs. Where Food Comes | Hafnia vs. Asure Software |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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