Correlation Between Emova Group and Hydrogen Refueling
Can any of the company-specific risk be diversified away by investing in both Emova Group and Hydrogen Refueling 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 Emova Group and Hydrogen Refueling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emova Group SA and Hydrogen Refueling Solutions, you can compare the effects of market volatilities on Emova Group and Hydrogen Refueling 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 Emova Group with a short position of Hydrogen Refueling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emova Group and Hydrogen Refueling.
Diversification Opportunities for Emova Group and Hydrogen Refueling
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emova and Hydrogen is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Emova Group SA and Hydrogen Refueling Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydrogen Refueling and Emova Group 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 Emova Group SA are associated (or correlated) with Hydrogen Refueling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydrogen Refueling has no effect on the direction of Emova Group i.e., Emova Group and Hydrogen Refueling go up and down completely randomly.
Pair Corralation between Emova Group and Hydrogen Refueling
Assuming the 90 days trading horizon Emova Group is expected to generate 12.62 times less return on investment than Hydrogen Refueling. But when comparing it to its historical volatility, Emova Group SA is 1.61 times less risky than Hydrogen Refueling. It trades about 0.03 of its potential returns per unit of risk. Hydrogen Refueling Solutions is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 333.00 in Hydrogen Refueling Solutions on November 28, 2024 and sell it today you would earn a total of 88.00 from holding Hydrogen Refueling Solutions or generate 26.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emova Group SA vs. Hydrogen Refueling Solutions
Performance |
| Timeline |
| Emova Group SA |
| Hydrogen Refueling |
Emova Group and Hydrogen Refueling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emova Group and Hydrogen Refueling
The main advantage of trading using opposite Emova Group and Hydrogen Refueling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emova Group position performs unexpectedly, Hydrogen Refueling 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 Refueling will offset losses from the drop in Hydrogen Refueling's long position.| Emova Group vs. Claranova SE | Emova Group vs. Nextedia | Emova Group vs. Acheter Louer | Emova Group vs. Groupe Sfpi |
| Hydrogen Refueling vs. Hydrogene De France | Hydrogen Refueling vs. Neoen SA | Hydrogen Refueling vs. Voltalia SA | Hydrogen Refueling vs. OVH Groupe SAS |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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