Correlation Between VHAI and Hafnia
Can any of the company-specific risk be diversified away by investing in both VHAI 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 VHAI and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VHAI and Hafnia Limited, you can compare the effects of market volatilities on VHAI 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 VHAI with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of VHAI and Hafnia.
Diversification Opportunities for VHAI and Hafnia
Pay attention - limited upside
The 3 months correlation between VHAI and Hafnia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VHAI and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and VHAI 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 VHAI 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 VHAI i.e., VHAI and Hafnia go up and down completely randomly.
Pair Corralation between VHAI and Hafnia
If you would invest (100.00) in VHAI on November 28, 2024 and sell it today you would earn a total of 100.00 from holding VHAI or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
VHAI vs. Hafnia Limited
Performance |
| Timeline |
| VHAI |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Hafnia Limited |
VHAI and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VHAI and Hafnia
The main advantage of trading using opposite VHAI and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VHAI 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.| VHAI vs. National CineMedia | VHAI vs. SNDL Inc | VHAI vs. Willamette Valley Vineyards | VHAI vs. Diageo PLC ADR |
| Hafnia vs. RCI Hospitality Holdings | Hafnia vs. McDonalds | Hafnia vs. nLIGHT Inc | Hafnia vs. Braemar Hotels Resorts |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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