Correlation Between SITC International and Hafnia
Can any of the company-specific risk be diversified away by investing in both SITC International 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 SITC International and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SITC International Holdings and Hafnia Limited, you can compare the effects of market volatilities on SITC International 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 SITC International with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SITC International and Hafnia.
Diversification Opportunities for SITC International and Hafnia
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SITC and Hafnia is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding SITC International Holdings and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and SITC International 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 SITC International Holdings 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 SITC International i.e., SITC International and Hafnia go up and down completely randomly.
Pair Corralation between SITC International and Hafnia
If you would invest 193.00 in SITC International Holdings on September 2, 2024 and sell it today you would earn a total of 45.00 from holding SITC International Holdings or generate 23.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
SITC International Holdings vs. Hafnia Limited
Performance |
| Timeline |
| SITC International |
| Hafnia Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SITC International and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SITC International and Hafnia
The main advantage of trading using opposite SITC International and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SITC International 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.| SITC International vs. COSCO SHIPPING Development | SITC International vs. COSCO SHIPPING Holdings | SITC International vs. Nippon Yusen Kabushiki | SITC International vs. Western Bulk Chartering |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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