Correlation Between Savers Value and Hafnia
Can any of the company-specific risk be diversified away by investing in both Savers Value 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 Savers Value and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Savers Value Village, and Hafnia Limited, you can compare the effects of market volatilities on Savers Value 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 Savers Value with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Savers Value and Hafnia.
Diversification Opportunities for Savers Value and Hafnia
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Savers and Hafnia is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Savers Value Village, and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Savers Value 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 Savers Value Village, 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 Savers Value i.e., Savers Value and Hafnia go up and down completely randomly.
Pair Corralation between Savers Value and Hafnia
Considering the 90-day investment horizon Savers Value Village, is expected to generate 1.62 times more return on investment than Hafnia. However, Savers Value is 1.62 times more volatile than Hafnia Limited. It trades about -0.1 of its potential returns per unit of risk. Hafnia Limited is currently generating about -0.18 per unit of risk. If you would invest 1,000.00 in Savers Value Village, on August 27, 2024 and sell it today you would lose (87.00) from holding Savers Value Village, or give up 8.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Savers Value Village, vs. Hafnia Limited
Performance |
| Timeline |
| Savers Value Village, |
| Hafnia Limited |
Savers Value and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Savers Value and Hafnia
The main advantage of trading using opposite Savers Value and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Savers Value 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.| Savers Value vs. Hafnia Limited | Savers Value vs. Old Dominion Freight | Savers Value vs. Scholastic | Savers Value vs. Skillful Craftsman Education |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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