Correlation Between 126650DK3 and Hafnia
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By analyzing existing cross correlation between CVS HEALTH P and Hafnia Limited, you can compare the effects of market volatilities on 126650DK3 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 126650DK3 with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of 126650DK3 and Hafnia.
Diversification Opportunities for 126650DK3 and Hafnia
Very weak diversification
The 3 months correlation between 126650DK3 and Hafnia is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding CVS HEALTH P and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and 126650DK3 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 CVS HEALTH P 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 126650DK3 i.e., 126650DK3 and Hafnia go up and down completely randomly.
Pair Corralation between 126650DK3 and Hafnia
Assuming the 90 days trading horizon CVS HEALTH P is expected to generate 28.3 times more return on investment than Hafnia. However, 126650DK3 is 28.3 times more volatile than Hafnia Limited. It trades about 0.07 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.04 per unit of risk. If you would invest 8,880 in CVS HEALTH P on September 3, 2024 and sell it today you would lose (809.00) from holding CVS HEALTH P or give up 9.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 84.62% |
| Values | Daily Returns |
CVS HEALTH P vs. Hafnia Limited
Performance |
| Timeline |
| CVS HEALTH P |
| Hafnia Limited |
126650DK3 and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 126650DK3 and Hafnia
The main advantage of trading using opposite 126650DK3 and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 126650DK3 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.| 126650DK3 vs. The Travelers Companies | 126650DK3 vs. GE Aerospace | 126650DK3 vs. Walmart | 126650DK3 vs. Pfizer Inc |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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