Correlation Between AFC Energy and Hydrogen Hybrid
Can any of the company-specific risk be diversified away by investing in both AFC Energy and Hydrogen Hybrid 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 AFC Energy and Hydrogen Hybrid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFC Energy plc and Hydrogen Hybrid Technologies, you can compare the effects of market volatilities on AFC Energy and Hydrogen Hybrid 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 AFC Energy with a short position of Hydrogen Hybrid. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFC Energy and Hydrogen Hybrid.
Diversification Opportunities for AFC Energy and Hydrogen Hybrid
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFC and Hydrogen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AFC Energy plc and Hydrogen Hybrid Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydrogen Hybrid Tech and AFC Energy 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 AFC Energy plc are associated (or correlated) with Hydrogen Hybrid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydrogen Hybrid Tech has no effect on the direction of AFC Energy i.e., AFC Energy and Hydrogen Hybrid go up and down completely randomly.
Pair Corralation between AFC Energy and Hydrogen Hybrid
Assuming the 90 days horizon AFC Energy plc is expected to under-perform the Hydrogen Hybrid. But the pink sheet apears to be less risky and, when comparing its historical volatility, AFC Energy plc is 15.79 times less risky than Hydrogen Hybrid. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Hydrogen Hybrid Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.05 in Hydrogen Hybrid Technologies on August 31, 2024 and sell it today you would lose (0.04) from holding Hydrogen Hybrid Technologies or give up 80.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AFC Energy plc vs. Hydrogen Hybrid Technologies
Performance |
| Timeline |
| AFC Energy plc |
| Hydrogen Hybrid Tech |
AFC Energy and Hydrogen Hybrid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFC Energy and Hydrogen Hybrid
The main advantage of trading using opposite AFC Energy and Hydrogen Hybrid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFC Energy position performs unexpectedly, Hydrogen Hybrid 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 Hybrid will offset losses from the drop in Hydrogen Hybrid's long position.| AFC Energy vs. Legrand SA ADR | AFC Energy vs. Loop Energy | AFC Energy vs. Sunrise New Energy | AFC Energy vs. Alfen NV |
| Hydrogen Hybrid vs. Crane NXT Co | Hydrogen Hybrid vs. Donaldson | Hydrogen Hybrid vs. ITT Inc | Hydrogen Hybrid vs. Franklin Electric Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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