Correlation Between 60 Degrees and Hafnia
Can any of the company-specific risk be diversified away by investing in both 60 Degrees 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 60 Degrees and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 60 Degrees Pharmaceuticals, and Hafnia Limited, you can compare the effects of market volatilities on 60 Degrees 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 60 Degrees with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of 60 Degrees and Hafnia.
Diversification Opportunities for 60 Degrees and Hafnia
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SXTPW and Hafnia is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding 60 Degrees Pharmaceuticals, and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and 60 Degrees 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 60 Degrees Pharmaceuticals, 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 60 Degrees i.e., 60 Degrees and Hafnia go up and down completely randomly.
Pair Corralation between 60 Degrees and Hafnia
Assuming the 90 days horizon 60 Degrees Pharmaceuticals, is expected to generate 25.63 times more return on investment than Hafnia. However, 60 Degrees is 25.63 times more volatile than Hafnia Limited. It trades about 0.21 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.01 per unit of risk. If you would invest 1.52 in 60 Degrees Pharmaceuticals, on September 3, 2024 and sell it today you would lose (0.04) from holding 60 Degrees Pharmaceuticals, or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 75.0% |
| Values | Daily Returns |
60 Degrees Pharmaceuticals, vs. Hafnia Limited
Performance |
| Timeline |
| 60 Degrees Pharmaceu |
| Hafnia Limited |
60 Degrees and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 60 Degrees and Hafnia
The main advantage of trading using opposite 60 Degrees and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 60 Degrees 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.| 60 Degrees vs. Hafnia Limited | 60 Degrees vs. Bright Scholar Education | 60 Degrees vs. Senmiao Technology | 60 Degrees vs. Radcom |
| Hafnia vs. Triton International Limited | Hafnia vs. Avis Budget Group | Hafnia vs. Videolocity International | Hafnia vs. Xponential Fitness |
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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