Correlation Between Green Hydrogen and CBrain AS
Can any of the company-specific risk be diversified away by investing in both Green Hydrogen and CBrain AS 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 CBrain AS 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 cBrain AS, you can compare the effects of market volatilities on Green Hydrogen and CBrain AS 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 CBrain AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Hydrogen and CBrain AS.
Diversification Opportunities for Green Hydrogen and CBrain AS
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Green and CBrain is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Green Hydrogen Systems and cBrain AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on cBrain AS 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 CBrain AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of cBrain AS has no effect on the direction of Green Hydrogen i.e., Green Hydrogen and CBrain AS go up and down completely randomly.
Pair Corralation between Green Hydrogen and CBrain AS
Assuming the 90 days trading horizon Green Hydrogen Systems is expected to under-perform the CBrain AS. In addition to that, Green Hydrogen is 2.36 times more volatile than cBrain AS. It trades about -0.09 of its total potential returns per unit of risk. cBrain AS is currently generating about -0.1 per unit of volatility. If you would invest 30,650 in cBrain AS on August 29, 2024 and sell it today you would lose (10,730) from holding cBrain AS or give up 35.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Hydrogen Systems vs. cBrain AS
Performance |
| Timeline |
| Green Hydrogen Systems |
| cBrain AS |
Green Hydrogen and CBrain AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Hydrogen and CBrain AS
The main advantage of trading using opposite Green Hydrogen and CBrain AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Hydrogen position performs unexpectedly, CBrain AS 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 CBrain AS will offset losses from the drop in CBrain AS's long position.| Green Hydrogen vs. Ambu AS | Green Hydrogen vs. GN Store Nord | Green Hydrogen vs. Bavarian Nordic | Green Hydrogen vs. FLSmidth Co |
| CBrain AS vs. ChemoMetec AS | CBrain AS vs. Ambu AS | CBrain AS vs. Genmab AS | CBrain AS vs. Zealand Pharma AS |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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