Correlation Between Pyxis Tankers and Hafnia
Can any of the company-specific risk be diversified away by investing in both Pyxis Tankers 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 Pyxis Tankers and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pyxis Tankers and Hafnia Limited, you can compare the effects of market volatilities on Pyxis Tankers 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 Pyxis Tankers with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pyxis Tankers and Hafnia.
Diversification Opportunities for Pyxis Tankers and Hafnia
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pyxis and Hafnia is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and Pyxis Tankers 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 Pyxis Tankers 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 Pyxis Tankers i.e., Pyxis Tankers and Hafnia go up and down completely randomly.
Pair Corralation between Pyxis Tankers and Hafnia
Assuming the 90 days horizon Pyxis Tankers is expected to under-perform the Hafnia. In addition to that, Pyxis Tankers is 9.3 times more volatile than Hafnia Limited. It trades about 0.0 of its total potential returns per unit of risk. Hafnia Limited is currently generating about 0.08 per unit of volatility. If you would invest 543.00 in Hafnia Limited on October 4, 2024 and sell it today you would earn a total of 20.00 from holding Hafnia Limited or generate 3.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 86.36% |
Values | Daily Returns |
Pyxis Tankers vs. Hafnia Limited
Performance |
Timeline |
Pyxis Tankers |
Hafnia Limited |
Pyxis Tankers and Hafnia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pyxis Tankers and Hafnia
The main advantage of trading using opposite Pyxis Tankers and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyxis Tankers 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.Pyxis Tankers vs. Ucommune International | Pyxis Tankers vs. Lion Financial Group | Pyxis Tankers vs. Aquagold International | Pyxis Tankers vs. Morningstar Unconstrained Allocation |
Hafnia vs. USA Compression Partners | Hafnia vs. Dynagas LNG Partners | Hafnia vs. Crossamerica Partners LP | Hafnia vs. Delek Logistics Partners |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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