Correlation Between Axion Power and Hydrogen Engine
Can any of the company-specific risk be diversified away by investing in both Axion Power 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 Axion Power and Hydrogen Engine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axion Power International and Hydrogen Engine Center, you can compare the effects of market volatilities on Axion Power 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 Axion Power with a short position of Hydrogen Engine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axion Power and Hydrogen Engine.
Diversification Opportunities for Axion Power and Hydrogen Engine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axion and Hydrogen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axion Power International 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 Axion Power 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 Axion Power International 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 Axion Power i.e., Axion Power and Hydrogen Engine go up and down completely randomly.
Pair Corralation between Axion Power and Hydrogen Engine
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 | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Axion Power International vs. Hydrogen Engine Center
Performance |
| Timeline |
| Axion Power International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hydrogen Engine Center |
Axion Power and Hydrogen Engine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axion Power and Hydrogen Engine
The main advantage of trading using opposite Axion Power and Hydrogen Engine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axion Power 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.| Axion Power vs. AFC Energy plc | Axion Power vs. ADS TEC ENERGY PLC | Axion Power vs. ABB | Axion Power vs. Ads Tec Energy |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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