Correlation Between Hafnia and Gryphon Digital

Can any of the company-specific risk be diversified away by investing in both Hafnia and Gryphon Digital 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 Hafnia and Gryphon Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hafnia Limited and Gryphon Digital Mining, you can compare the effects of market volatilities on Hafnia and Gryphon Digital 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 Hafnia with a short position of Gryphon Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Gryphon Digital.

Diversification Opportunities for Hafnia and Gryphon Digital

-0.29

Correlation Coefficient

Hafnia  Gryphon Digital

Very good diversification

The 3 months correlation between Hafnia and Gryphon is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Gryphon Digital Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gryphon Digital Mining and Hafnia 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 Hafnia Limited are associated (or correlated) with Gryphon Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gryphon Digital Mining has no effect on the direction of Hafnia i.e., Hafnia and Gryphon Digital go up and down completely randomly.

Pair Corralation between Hafnia and Gryphon Digital

Given the investment horizon of 90 days Hafnia Limited is expected to generate 0.3 times more return on investment than Gryphon Digital. However, Hafnia Limited is 3.32 times less risky than Gryphon Digital. It trades about 0.0 of its potential returns per unit of risk. Gryphon Digital Mining is currently generating about -0.07 per unit of risk. If you would invest  589.00  in Hafnia Limited on October 22, 2024 and sell it today you would lose (46.00) from holding Hafnia Limited or give up 7.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hafnia Limited  vs.  Gryphon Digital Mining

Hafnia Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hafnia Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Gryphon Digital Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gryphon Digital Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Hafnia and Gryphon Digital

The main advantage of trading using opposite Hafnia and Gryphon Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hafnia position performs unexpectedly, Gryphon Digital 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 Gryphon Digital will offset losses from the drop in Gryphon Digital's long position.

The idea behind Hafnia Limited and Gryphon Digital Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.