Correlation Between Clean Seas and HydrogenPro
Can any of the company-specific risk be diversified away by investing in both Clean Seas and HydrogenPro 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 Clean Seas and HydrogenPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Seas Seafood and HydrogenPro AS, you can compare the effects of market volatilities on Clean Seas and HydrogenPro 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 Clean Seas with a short position of HydrogenPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Seas and HydrogenPro.
Diversification Opportunities for Clean Seas and HydrogenPro
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Clean and HydrogenPro is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Clean Seas Seafood and HydrogenPro AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HydrogenPro AS and Clean Seas 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 Clean Seas Seafood are associated (or correlated) with HydrogenPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HydrogenPro AS has no effect on the direction of Clean Seas i.e., Clean Seas and HydrogenPro go up and down completely randomly.
Pair Corralation between Clean Seas and HydrogenPro
Assuming the 90 days trading horizon Clean Seas Seafood is expected to generate 1.02 times more return on investment than HydrogenPro. However, Clean Seas is 1.02 times more volatile than HydrogenPro AS. It trades about -0.05 of its potential returns per unit of risk. HydrogenPro AS is currently generating about -0.07 per unit of risk. If you would invest 395.00 in Clean Seas Seafood on September 14, 2024 and sell it today you would lose (295.00) from holding Clean Seas Seafood or give up 74.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Seas Seafood vs. HydrogenPro AS
Performance |
| Timeline |
| Clean Seas Seafood |
| HydrogenPro AS |
Clean Seas and HydrogenPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Seas and HydrogenPro
The main advantage of trading using opposite Clean Seas and HydrogenPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Seas position performs unexpectedly, HydrogenPro 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 HydrogenPro will offset losses from the drop in HydrogenPro's long position.| Clean Seas vs. SalMar ASA | Clean Seas vs. Lery Seafood Group | Clean Seas vs. Pf Bakkafrost | Clean Seas vs. Grieg Seafood ASA |
| HydrogenPro vs. Vow Green Metals | HydrogenPro vs. Clean Seas Seafood | HydrogenPro vs. Bien Sparebank ASA | HydrogenPro vs. Melhus Sparebank |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |