Correlation Between Hafnia and Yuexiu Transport

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

By analyzing existing cross correlation between Hafnia Limited and Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on Hafnia and Yuexiu Transport 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 Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hafnia and Yuexiu Transport.

Diversification Opportunities for Hafnia and Yuexiu Transport

0.47

Correlation Coefficient

Hafnia  Yuexiu Transport

Very weak diversification

The 3 months correlation between Hafnia and Yuexiu is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hafnia Limited and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of Hafnia i.e., Hafnia and Yuexiu Transport go up and down completely randomly.

Pair Corralation between Hafnia and Yuexiu Transport

Given the investment horizon of 90 days Hafnia Limited is expected to generate 4.59 times more return on investment than Yuexiu Transport. However, Hafnia is 4.59 times more volatile than Yuexiu Transport Infrastructure. It trades about 0.16 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.13 per unit of risk. If you would invest  494.00  in Hafnia Limited on May 8, 2025 and sell it today you would earn a total of  100.00  from holding Hafnia Limited or generate 20.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Hafnia Limited  vs.  Yuexiu Transport Infrastructur

Hafnia Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hafnia Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Hafnia displayed solid returns over the last few months and may actually be approaching a breakup point.

Yuexiu Transport Inf

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Yuexiu Transport Infrastructure are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Yuexiu Transport is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Hafnia and Yuexiu Transport

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

The idea behind Hafnia Limited and Yuexiu Transport Infrastructure 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 Global Correlations module to find global opportunities by holding instruments from different markets.