Correlation Between Wilh Wilhelmsen and Havila Shipping

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Wilh Wilhelmsen and Havila Shipping 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 Wilh Wilhelmsen and Havila Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilh Wilhelmsen Holding and Havila Shipping ASA, you can compare the effects of market volatilities on Wilh Wilhelmsen and Havila Shipping 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 Wilh Wilhelmsen with a short position of Havila Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilh Wilhelmsen and Havila Shipping.

Diversification Opportunities for Wilh Wilhelmsen and Havila Shipping

0.79
  Correlation Coefficient

Poor diversification

The 3 months correlation between Wilh and Havila is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Wilh Wilhelmsen Holding and Havila Shipping ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Havila Shipping ASA and Wilh Wilhelmsen 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 Wilh Wilhelmsen Holding are associated (or correlated) with Havila Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Havila Shipping ASA has no effect on the direction of Wilh Wilhelmsen i.e., Wilh Wilhelmsen and Havila Shipping go up and down completely randomly.

Pair Corralation between Wilh Wilhelmsen and Havila Shipping

Assuming the 90 days trading horizon Wilh Wilhelmsen Holding is expected to generate 0.47 times more return on investment than Havila Shipping. However, Wilh Wilhelmsen Holding is 2.11 times less risky than Havila Shipping. It trades about -0.08 of its potential returns per unit of risk. Havila Shipping ASA is currently generating about -0.27 per unit of risk. If you would invest  41,027  in Wilh Wilhelmsen Holding on September 18, 2024 and sell it today you would lose (3,527) from holding Wilh Wilhelmsen Holding or give up 8.6% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Wilh Wilhelmsen Holding  vs.  Havila Shipping ASA

 Performance 
       Timeline  
Wilh Wilhelmsen Holding 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Wilh Wilhelmsen Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's essential indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.
Havila Shipping ASA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Havila Shipping ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Wilh Wilhelmsen and Havila Shipping Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Wilh Wilhelmsen and Havila Shipping

The main advantage of trading using opposite Wilh Wilhelmsen and Havila Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilh Wilhelmsen position performs unexpectedly, Havila Shipping 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 Havila Shipping will offset losses from the drop in Havila Shipping's long position.
The idea behind Wilh Wilhelmsen Holding and Havila Shipping ASA 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.
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Complementary Tools

Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine