Correlation Between Green Hydrogen and H Lundbeck
Can any of the company-specific risk be diversified away by investing in both Green Hydrogen and H Lundbeck 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 H Lundbeck 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 H Lundbeck AS, you can compare the effects of market volatilities on Green Hydrogen and H Lundbeck 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 H Lundbeck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Hydrogen and H Lundbeck.
Diversification Opportunities for Green Hydrogen and H Lundbeck
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Green and HLUN-A is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Green Hydrogen Systems and H Lundbeck AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H Lundbeck 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 H Lundbeck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H Lundbeck AS has no effect on the direction of Green Hydrogen i.e., Green Hydrogen and H Lundbeck go up and down completely randomly.
Pair Corralation between Green Hydrogen and H Lundbeck
Assuming the 90 days trading horizon Green Hydrogen Systems is expected to under-perform the H Lundbeck. In addition to that, Green Hydrogen is 3.86 times more volatile than H Lundbeck AS. It trades about -0.01 of its total potential returns per unit of risk. H Lundbeck AS is currently generating about 0.07 per unit of volatility. If you would invest 2,824 in H Lundbeck AS on September 4, 2024 and sell it today you would earn a total of 726.00 from holding H Lundbeck AS or generate 25.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Hydrogen Systems vs. H Lundbeck AS
Performance |
| Timeline |
| Green Hydrogen Systems |
| H Lundbeck AS |
Green Hydrogen and H Lundbeck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Hydrogen and H Lundbeck
The main advantage of trading using opposite Green Hydrogen and H Lundbeck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Hydrogen position performs unexpectedly, H Lundbeck 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 H Lundbeck will offset losses from the drop in H Lundbeck's long position.| Green Hydrogen vs. Ambu AS | Green Hydrogen vs. GN Store Nord | Green Hydrogen vs. Bavarian Nordic | Green Hydrogen vs. FLSmidth Co |
| H Lundbeck vs. GN Store Nord | H Lundbeck vs. FLSmidth Co | H Lundbeck vs. ALK Abell AS | H Lundbeck vs. Ambu 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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