Correlation Between Mitsui OSK and Hapag Lloyd
Can any of the company-specific risk be diversified away by investing in both Mitsui OSK and Hapag Lloyd 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 Hapag Lloyd 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 Hapag Lloyd Aktiengesellschaft, you can compare the effects of market volatilities on Mitsui OSK and Hapag Lloyd 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 Hapag Lloyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsui OSK and Hapag Lloyd.
Diversification Opportunities for Mitsui OSK and Hapag Lloyd
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mitsui and Hapag is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Mitsui OSK Lines and Hapag Lloyd Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hapag Lloyd Aktienge 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 Hapag Lloyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hapag Lloyd Aktienge has no effect on the direction of Mitsui OSK i.e., Mitsui OSK and Hapag Lloyd go up and down completely randomly.
Pair Corralation between Mitsui OSK and Hapag Lloyd
Assuming the 90 days horizon Mitsui OSK Lines is expected to generate 0.71 times more return on investment than Hapag Lloyd. However, Mitsui OSK Lines is 1.42 times less risky than Hapag Lloyd. It trades about 0.22 of its potential returns per unit of risk. Hapag Lloyd Aktiengesellschaft is currently generating about -0.19 per unit of risk. If you would invest 1,628 in Mitsui OSK Lines on August 27, 2024 and sell it today you would earn a total of 138.00 from holding Mitsui OSK Lines or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsui OSK Lines vs. Hapag Lloyd Aktiengesellschaft
Performance |
| Timeline |
| Mitsui OSK Lines |
| Hapag Lloyd Aktienge |
Mitsui OSK and Hapag Lloyd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsui OSK and Hapag Lloyd
The main advantage of trading using opposite Mitsui OSK and Hapag Lloyd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsui OSK position performs unexpectedly, Hapag Lloyd 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 Hapag Lloyd will offset losses from the drop in Hapag Lloyd's long position.| Mitsui OSK vs. SITC International Holdings | Mitsui OSK vs. Orient Overseas Limited | Mitsui OSK vs. Western Bulk Chartering | Mitsui OSK vs. Hapag Lloyd Aktiengesellschaft |
| Hapag Lloyd vs. AP Moeller | Hapag Lloyd vs. Orient Overseas Limited | Hapag Lloyd vs. AP Mller | Hapag Lloyd vs. Mitsui OSK Lines |
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 CEOs Directory module to screen CEOs from public companies around the world.
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