Correlation Between Green Hydrogen and Aalborg Boldspilklub
Can any of the company-specific risk be diversified away by investing in both Green Hydrogen and Aalborg Boldspilklub 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 Green Hydrogen and Aalborg Boldspilklub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Hydrogen Systems and Aalborg Boldspilklub AS, you can compare the effects of market volatilities on Green Hydrogen and Aalborg Boldspilklub 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 Green Hydrogen with a short position of Aalborg Boldspilklub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Hydrogen and Aalborg Boldspilklub.
Diversification Opportunities for Green Hydrogen and Aalborg Boldspilklub
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Green and Aalborg is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Green Hydrogen Systems and Aalborg Boldspilklub AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aalborg Boldspilklub and Green 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 Green Hydrogen Systems are associated (or correlated) with Aalborg Boldspilklub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aalborg Boldspilklub has no effect on the direction of Green Hydrogen i.e., Green Hydrogen and Aalborg Boldspilklub go up and down completely randomly.
Pair Corralation between Green Hydrogen and Aalborg Boldspilklub
Assuming the 90 days trading horizon Green Hydrogen Systems is expected to under-perform the Aalborg Boldspilklub. In addition to that, Green Hydrogen is 2.7 times more volatile than Aalborg Boldspilklub AS. It trades about -0.04 of its total potential returns per unit of risk. Aalborg Boldspilklub AS is currently generating about -0.02 per unit of volatility. If you would invest 4,660 in Aalborg Boldspilklub AS on November 5, 2024 and sell it today you would lose (1,240) from holding Aalborg Boldspilklub AS or give up 26.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Hydrogen Systems vs. Aalborg Boldspilklub AS
Performance |
| Timeline |
| Green Hydrogen Systems |
| Aalborg Boldspilklub |
Green Hydrogen and Aalborg Boldspilklub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Hydrogen and Aalborg Boldspilklub
The main advantage of trading using opposite Green Hydrogen and Aalborg Boldspilklub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Hydrogen position performs unexpectedly, Aalborg Boldspilklub 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 Aalborg Boldspilklub will offset losses from the drop in Aalborg Boldspilklub's long position.| Green Hydrogen vs. Ambu AS | Green Hydrogen vs. GN Store Nord | Green Hydrogen vs. Bavarian Nordic | Green Hydrogen vs. FLSmidth Co |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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