Correlation Between Phihong Technology and Hydrogen Engine
Can any of the company-specific risk be diversified away by investing in both Phihong Technology and Hydrogen Engine 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 Phihong Technology and Hydrogen Engine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phihong Technology Co and Hydrogen Engine Center, you can compare the effects of market volatilities on Phihong Technology and Hydrogen Engine 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 Phihong Technology with a short position of Hydrogen Engine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phihong Technology and Hydrogen Engine.
Diversification Opportunities for Phihong Technology and Hydrogen Engine
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Phihong and Hydrogen is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Phihong Technology Co and Hydrogen Engine Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydrogen Engine Center and Phihong Technology 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 Phihong Technology Co are associated (or correlated) with Hydrogen Engine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydrogen Engine Center has no effect on the direction of Phihong Technology i.e., Phihong Technology and Hydrogen Engine go up and down completely randomly.
Pair Corralation between Phihong Technology and Hydrogen Engine
Assuming the 90 days trading horizon Phihong Technology is expected to generate 4.61 times less return on investment than Hydrogen Engine. But when comparing it to its historical volatility, Phihong Technology Co is 10.4 times less risky than Hydrogen Engine. It trades about 0.25 of its potential returns per unit of risk. Hydrogen Engine Center is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.60 in Hydrogen Engine Center on August 28, 2024 and sell it today you would earn a total of 0.05 from holding Hydrogen Engine Center or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phihong Technology Co vs. Hydrogen Engine Center
Performance |
| Timeline |
| Phihong Technology |
| Hydrogen Engine Center |
Phihong Technology and Hydrogen Engine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phihong Technology and Hydrogen Engine
The main advantage of trading using opposite Phihong Technology and Hydrogen Engine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phihong Technology position performs unexpectedly, Hydrogen Engine 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 Hydrogen Engine will offset losses from the drop in Hydrogen Engine's long position.| Phihong Technology vs. Sunny Friend Environmental | Phihong Technology vs. TTET Union Corp | Phihong Technology vs. ECOVE Environment Corp | Phihong Technology vs. Yulon Finance Corp |
| Hydrogen Engine vs. FREYR Battery SA | Hydrogen Engine vs. nVent Electric PLC | Hydrogen Engine vs. Hubbell | Hydrogen Engine vs. Advanced Energy Industries |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets |