Correlation Between 459200KV2 and Hafnia
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By analyzing existing cross correlation between IBM 49 27 JUL 52 and Hafnia Limited, you can compare the effects of market volatilities on 459200KV2 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 459200KV2 with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of 459200KV2 and Hafnia.
Diversification Opportunities for 459200KV2 and Hafnia
Poor diversification
The 3 months correlation between 459200KV2 and Hafnia is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding IBM 49 27 JUL 52 and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and 459200KV2 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 IBM 49 27 JUL 52 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 459200KV2 i.e., 459200KV2 and Hafnia go up and down completely randomly.
Pair Corralation between 459200KV2 and Hafnia
Assuming the 90 days trading horizon IBM 49 27 JUL 52 is expected to generate 0.89 times more return on investment than Hafnia. However, IBM 49 27 JUL 52 is 1.13 times less risky than Hafnia. It trades about 0.1 of its potential returns per unit of risk. Hafnia Limited is currently generating about -0.25 per unit of risk. If you would invest 9,161 in IBM 49 27 JUL 52 on August 29, 2024 and sell it today you would earn a total of 291.00 from holding IBM 49 27 JUL 52 or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.82% |
| Values | Daily Returns |
IBM 49 27 JUL 52 vs. Hafnia Limited
Performance |
| Timeline |
| IBM 49 27 |
| Hafnia Limited |
459200KV2 and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 459200KV2 and Hafnia
The main advantage of trading using opposite 459200KV2 and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 459200KV2 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.| 459200KV2 vs. AEP TEX INC | 459200KV2 vs. US BANK NATIONAL | 459200KV2 vs. 3M Company | 459200KV2 vs. Alcoa Corp |
| Hafnia vs. The Gap, | Hafnia vs. Boot Barn Holdings | Hafnia vs. National Beverage Corp | Hafnia vs. Kontoor Brands |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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