Correlation Between Hoegh Autoliners and MPC Container

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

By analyzing existing cross correlation between Hoegh Autoliners ASA and MPC Container Ships, you can compare the effects of market volatilities on Hoegh Autoliners and MPC Container 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 Hoegh Autoliners with a short position of MPC Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoegh Autoliners and MPC Container.

Diversification Opportunities for Hoegh Autoliners and MPC Container

0.89

Correlation Coefficient

Hoegh Autoliners  MPC Container

Very poor diversification

The 3 months correlation between Hoegh and MPC is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hoegh Autoliners ASA and MPC Container Ships in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MPC Container Ships and Hoegh Autoliners 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 Hoegh Autoliners ASA are associated (or correlated) with MPC Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MPC Container Ships has no effect on the direction of Hoegh Autoliners i.e., Hoegh Autoliners and MPC Container go up and down completely randomly.

Pair Corralation between Hoegh Autoliners and MPC Container

Assuming the 90 days trading horizon Hoegh Autoliners ASA is expected to generate 0.77 times more return on investment than MPC Container. However, Hoegh Autoliners ASA is 1.3 times less risky than MPC Container. It trades about 0.27 of its potential returns per unit of risk. MPC Container Ships is currently generating about 0.16 per unit of risk. If you would invest  7,013  in Hoegh Autoliners ASA on April 23, 2025 and sell it today you would earn a total of  2,832  from holding Hoegh Autoliners ASA or generate 40.38% return on investment over 90 days.

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

Hoegh Autoliners ASA  vs.  MPC Container Ships

Hoegh Autoliners ASA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hoegh Autoliners ASA are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Hoegh Autoliners displayed solid returns over the last few months and may actually be approaching a breakup point.

MPC Container Ships

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MPC Container Ships are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting essential indicators, MPC Container disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hoegh Autoliners and MPC Container

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

The idea behind Hoegh Autoliners ASA and MPC Container Ships 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.