Correlation Between Micron Technology and Hafnia
Can any of the company-specific risk be diversified away by investing in both Micron Technology 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 Micron Technology and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and Hafnia Limited, you can compare the effects of market volatilities on Micron Technology 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 Micron Technology with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Hafnia.
Diversification Opportunities for Micron Technology and Hafnia
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Micron and Hafnia is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Micron Technology 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 Micron Technology 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 Micron Technology i.e., Micron Technology and Hafnia go up and down completely randomly.
Pair Corralation between Micron Technology and Hafnia
If you would invest 830.00 in Hafnia Limited on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Hafnia Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Micron Technology vs. Hafnia Limited
Performance |
| Timeline |
| Micron Technology |
| Hafnia Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Micron Technology and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and Hafnia
The main advantage of trading using opposite Micron Technology and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology 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.The idea behind Micron Technology and Hafnia Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hafnia vs. Codexis | Hafnia vs. Playtika Holding Corp | Hafnia vs. Contagious Gaming | Hafnia vs. Electronic Arts |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |