Correlation Between Ocean SunAs and Havila Shipping

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

By analyzing existing cross correlation between Ocean SunAs and Havila Shipping ASA, you can compare the effects of market volatilities on Ocean SunAs 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 Ocean SunAs with a short position of Havila Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean SunAs and Havila Shipping.

Diversification Opportunities for Ocean SunAs and Havila Shipping

0.0

Correlation Coefficient

Ocean SunAs  Havila Shipping

Pay attention - limited upside

The 3 months correlation between Ocean and Havila is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ocean SunAs 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 Ocean SunAs 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 Ocean SunAs 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 Ocean SunAs i.e., Ocean SunAs and Havila Shipping go up and down completely randomly.

Pair Corralation between Ocean SunAs and Havila Shipping

If you would invest  440.00  in Havila Shipping ASA on January 29, 2024 and sell it today you would earn a total of  240.00  from holding Havila Shipping ASA or generate 54.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ocean SunAs  vs.  Havila Shipping ASA

Ocean SunAs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ocean SunAs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Ocean SunAs is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Havila Shipping ASA

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Havila Shipping ASA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Havila Shipping disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ocean SunAs and Havila Shipping

The main advantage of trading using opposite Ocean SunAs and Havila Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean SunAs 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 Ocean SunAs 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.