Correlation Between First Hydrogen and Aston Martin
Can any of the company-specific risk be diversified away by investing in both First Hydrogen and Aston Martin 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 First Hydrogen and Aston Martin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Hydrogen Corp and Aston Martin Lagonda, you can compare the effects of market volatilities on First Hydrogen and Aston Martin 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 First Hydrogen with a short position of Aston Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Hydrogen and Aston Martin.
Diversification Opportunities for First Hydrogen and Aston Martin
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between First and Aston is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding First Hydrogen Corp and Aston Martin Lagonda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Martin Lagonda and First Hydrogen 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 First Hydrogen Corp are associated (or correlated) with Aston Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Martin Lagonda has no effect on the direction of First Hydrogen i.e., First Hydrogen and Aston Martin go up and down completely randomly.
Pair Corralation between First Hydrogen and Aston Martin
Assuming the 90 days horizon First Hydrogen Corp is expected to under-perform the Aston Martin. In addition to that, First Hydrogen is 1.73 times more volatile than Aston Martin Lagonda. It trades about -0.08 of its total potential returns per unit of risk. Aston Martin Lagonda is currently generating about -0.06 per unit of volatility. If you would invest 246.00 in Aston Martin Lagonda on November 9, 2024 and sell it today you would lose (117.00) from holding Aston Martin Lagonda or give up 47.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.26% |
| Values | Daily Returns |
First Hydrogen Corp vs. Aston Martin Lagonda
Performance |
| Timeline |
| First Hydrogen Corp |
| Aston Martin Lagonda |
First Hydrogen and Aston Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Hydrogen and Aston Martin
The main advantage of trading using opposite First Hydrogen and Aston Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Hydrogen position performs unexpectedly, Aston Martin 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 Aston Martin will offset losses from the drop in Aston Martin's long position.| First Hydrogen vs. BAIC Motor | First Hydrogen vs. Zapp Electric Vehicles | First Hydrogen vs. Guangzhou Automobile Group | First Hydrogen vs. Phoenix Motor Common |
| Aston Martin vs. Geely Automobile Holdings | Aston Martin vs. Guangzhou Automobile Group | Aston Martin vs. Dowlais Group plc | Aston Martin vs. NFI Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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