Correlation Between CurrentC Power and Hafnia

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

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

Diversification Opportunities for CurrentC Power and Hafnia

0.13

Correlation Coefficient

CurrentC Power  Hafnia

Average diversification

The 3 months correlation between CurrentC and Hafnia is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding CurrentC Power and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and CurrentC Power 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 CurrentC Power 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 CurrentC Power i.e., CurrentC Power and Hafnia go up and down completely randomly.

Pair Corralation between CurrentC Power and Hafnia

Given the investment horizon of 90 days CurrentC Power is expected to generate 22.85 times more return on investment than Hafnia. However, CurrentC Power is 22.85 times more volatile than Hafnia Limited. It trades about 0.17 of its potential returns per unit of risk. Hafnia Limited is currently generating about 0.1 per unit of risk. If you would invest  1.30  in CurrentC Power on July 21, 2025 and sell it today you would lose (0.45) from holding CurrentC Power or give up 34.62% of portfolio value over 90 days.

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

CurrentC Power  vs.  Hafnia Limited

CurrentC Power

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CurrentC Power are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, CurrentC Power showed solid returns over the last few months and may actually be approaching a breakup point.

Hafnia Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Hafnia Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Hafnia displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CurrentC Power and Hafnia

The main advantage of trading using opposite CurrentC Power and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CurrentC Power 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.

The idea behind CurrentC Power and Hafnia Limited 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.