Correlation Between United States and Hafnia
Can any of the company-specific risk be diversified away by investing in both United States 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 United States and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and Hafnia Limited, you can compare the effects of market volatilities on United States 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 United States with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Hafnia.
Diversification Opportunities for United States and Hafnia
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Hafnia is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and United States 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 United States Steel 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 United States i.e., United States and Hafnia go up and down completely randomly.
Pair Corralation between United States and Hafnia
Assuming the 90 days trading horizon United States Steel is expected to generate 1.0 times more return on investment than Hafnia. However, United States Steel is 1.0 times less risky than Hafnia. It trades about 0.03 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.03 per unit of risk. If you would invest 3,304 in United States Steel on September 4, 2024 and sell it today you would earn a total of 549.00 from holding United States Steel or generate 16.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
United States Steel vs. Hafnia Limited
Performance |
| Timeline |
| United States Steel |
| Hafnia Limited |
United States and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Hafnia
The main advantage of trading using opposite United States and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States 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.| United States vs. GAMESTOP | United States vs. Digilife Technologies Limited | United States vs. GigaMedia | United States vs. HOCHSCHILD MINING |
| Hafnia vs. NH HOTEL GROUP | Hafnia vs. TERADATA | Hafnia vs. Public Storage | Hafnia vs. Science Applications International |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |