Correlation Between Public Storage and Hafnia
Can any of the company-specific risk be diversified away by investing in both Public Storage 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 Public Storage and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and Hafnia Limited, you can compare the effects of market volatilities on Public Storage 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 Public Storage with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and Hafnia.
Diversification Opportunities for Public Storage and Hafnia
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Public and Hafnia is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Public Storage 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 Public Storage 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 Public Storage i.e., Public Storage and Hafnia go up and down completely randomly.
Pair Corralation between Public Storage and Hafnia
Assuming the 90 days horizon Public Storage is expected to generate 1.97 times less return on investment than Hafnia. But when comparing it to its historical volatility, Public Storage is 1.78 times less risky than Hafnia. It trades about 0.04 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Hafnia Limited on September 12, 2024 and sell it today you would earn a total of 173.00 from holding Hafnia Limited or generate 53.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Public Storage vs. Hafnia Limited
Performance |
| Timeline |
| Public Storage |
| Hafnia Limited |
Public Storage and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and Hafnia
The main advantage of trading using opposite Public Storage and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage 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.| Public Storage vs. BROADSTNET LEADL 00025 | Public Storage vs. CARSALESCOM | Public Storage vs. TEXAS ROADHOUSE | Public Storage vs. TRAINLINE PLC LS |
| Hafnia vs. Superior Plus Corp | Hafnia vs. SIVERS SEMICONDUCTORS AB | Hafnia vs. CHINA HUARONG ENERHD 50 | Hafnia vs. NORDIC HALIBUT AS |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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