Correlation Between FOM Technologies and Green Hydrogen
Can any of the company-specific risk be diversified away by investing in both FOM Technologies and Green Hydrogen 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 FOM Technologies and Green Hydrogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOM Technologies AS and Green Hydrogen Systems, you can compare the effects of market volatilities on FOM Technologies and Green Hydrogen 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 FOM Technologies with a short position of Green Hydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOM Technologies and Green Hydrogen.
Diversification Opportunities for FOM Technologies and Green Hydrogen
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FOM and Green is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding FOM Technologies AS and Green Hydrogen Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Hydrogen Systems and FOM Technologies 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 FOM Technologies AS are associated (or correlated) with Green Hydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Hydrogen Systems has no effect on the direction of FOM Technologies i.e., FOM Technologies and Green Hydrogen go up and down completely randomly.
Pair Corralation between FOM Technologies and Green Hydrogen
Assuming the 90 days trading horizon FOM Technologies AS is expected to under-perform the Green Hydrogen. But the stock apears to be less risky and, when comparing its historical volatility, FOM Technologies AS is 1.44 times less risky than Green Hydrogen. The stock trades about -0.09 of its potential returns per unit of risk. The Green Hydrogen Systems is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 673.00 in Green Hydrogen Systems on August 25, 2024 and sell it today you would lose (458.00) from holding Green Hydrogen Systems or give up 68.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOM Technologies AS vs. Green Hydrogen Systems
Performance |
| Timeline |
| FOM Technologies |
| Green Hydrogen Systems |
FOM Technologies and Green Hydrogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOM Technologies and Green Hydrogen
The main advantage of trading using opposite FOM Technologies and Green Hydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOM Technologies position performs unexpectedly, Green Hydrogen 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 Green Hydrogen will offset losses from the drop in Green Hydrogen's long position.| FOM Technologies vs. cBrain AS | FOM Technologies vs. Penneo AS | FOM Technologies vs. Shape Robotics AS | FOM Technologies vs. ALK Abell AS |
| Green Hydrogen vs. Ambu AS | Green Hydrogen vs. GN Store Nord | Green Hydrogen vs. Bavarian Nordic | Green Hydrogen vs. FLSmidth Co |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |