Correlation Between Blockchain Group and Hydrogene
Can any of the company-specific risk be diversified away by investing in both Blockchain Group and Hydrogene 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 Blockchain Group and Hydrogene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blockchain Group SA and Hydrogene De France, you can compare the effects of market volatilities on Blockchain Group and Hydrogene 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 Blockchain Group with a short position of Hydrogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockchain Group and Hydrogene.
Diversification Opportunities for Blockchain Group and Hydrogene
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blockchain and Hydrogene is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Blockchain Group SA and Hydrogene De France in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydrogene De France and Blockchain 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 Blockchain Group SA are associated (or correlated) with Hydrogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydrogene De France has no effect on the direction of Blockchain Group i.e., Blockchain Group and Hydrogene go up and down completely randomly.
Pair Corralation between Blockchain Group and Hydrogene
Assuming the 90 days trading horizon Blockchain Group SA is expected to under-perform the Hydrogene. But the stock apears to be less risky and, when comparing its historical volatility, Blockchain Group SA is 1.04 times less risky than Hydrogene. The stock trades about -0.26 of its potential returns per unit of risk. The Hydrogene De France is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 397.00 in Hydrogene De France on December 1, 2024 and sell it today you would earn a total of 273.00 from holding Hydrogene De France or generate 68.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blockchain Group SA vs. Hydrogene De France
Performance |
| Timeline |
| Blockchain Group |
| Hydrogene De France |
Blockchain Group and Hydrogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blockchain Group and Hydrogene
The main advantage of trading using opposite Blockchain Group and Hydrogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockchain Group position performs unexpectedly, Hydrogene 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 Hydrogene will offset losses from the drop in Hydrogene's long position.| Blockchain Group vs. Gaussin | Blockchain Group vs. Drone Volt SA | Blockchain Group vs. Amoeba SA | Blockchain Group vs. Gensight Biologics SA |
| Hydrogene vs. Hydrogen Refueling Solutions | Hydrogene vs. Lhyfe SA | Hydrogene vs. Neoen SA | Hydrogene vs. Voltalia SA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |