Correlation Between 58013MFC3 and Hafnia
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By analyzing existing cross correlation between MCDONALDS P MEDIUM and Hafnia Limited, you can compare the effects of market volatilities on 58013MFC3 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 58013MFC3 with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of 58013MFC3 and Hafnia.
Diversification Opportunities for 58013MFC3 and Hafnia
Poor diversification
The 3 months correlation between 58013MFC3 and Hafnia is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding MCDONALDS P MEDIUM and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and 58013MFC3 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 MCDONALDS P MEDIUM 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 58013MFC3 i.e., 58013MFC3 and Hafnia go up and down completely randomly.
Pair Corralation between 58013MFC3 and Hafnia
Assuming the 90 days trading horizon MCDONALDS P MEDIUM is expected to generate 16.64 times more return on investment than Hafnia. However, 58013MFC3 is 16.64 times more volatile than Hafnia Limited. It trades about 0.04 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.05 per unit of risk. If you would invest 8,957 in MCDONALDS P MEDIUM on September 13, 2024 and sell it today you would lose (454.00) from holding MCDONALDS P MEDIUM or give up 5.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 87.55% |
| Values | Daily Returns |
MCDONALDS P MEDIUM vs. Hafnia Limited
Performance |
| Timeline |
| MCDONALDS P MEDIUM |
| Hafnia Limited |
58013MFC3 and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 58013MFC3 and Hafnia
The main advantage of trading using opposite 58013MFC3 and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 58013MFC3 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.| 58013MFC3 vs. Microbot Medical | 58013MFC3 vs. Analog Devices | 58013MFC3 vs. Amkor Technology | 58013MFC3 vs. KLA Tencor |
| Hafnia vs. Vestis | Hafnia vs. Artisan Partners Asset | Hafnia vs. Global Ship Lease | Hafnia vs. Freedom Bank of |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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