Correlation Between Green Hydrogen and Scandinavian Medical
Can any of the company-specific risk be diversified away by investing in both Green Hydrogen and Scandinavian Medical 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 Scandinavian Medical 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 Scandinavian Medical Solutions, you can compare the effects of market volatilities on Green Hydrogen and Scandinavian Medical 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 Scandinavian Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Hydrogen and Scandinavian Medical.
Diversification Opportunities for Green Hydrogen and Scandinavian Medical
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Green and Scandinavian is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Green Hydrogen Systems and Scandinavian Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Medical 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 Scandinavian Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Medical has no effect on the direction of Green Hydrogen i.e., Green Hydrogen and Scandinavian Medical go up and down completely randomly.
Pair Corralation between Green Hydrogen and Scandinavian Medical
Assuming the 90 days trading horizon Green Hydrogen Systems is expected to under-perform the Scandinavian Medical. In addition to that, Green Hydrogen is 2.12 times more volatile than Scandinavian Medical Solutions. It trades about -0.02 of its total potential returns per unit of risk. Scandinavian Medical Solutions is currently generating about 0.01 per unit of volatility. If you would invest 768.00 in Scandinavian Medical Solutions on August 26, 2024 and sell it today you would lose (104.00) from holding Scandinavian Medical Solutions or give up 13.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Hydrogen Systems vs. Scandinavian Medical Solutions
Performance |
| Timeline |
| Green Hydrogen Systems |
| Scandinavian Medical |
Green Hydrogen and Scandinavian Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Hydrogen and Scandinavian Medical
The main advantage of trading using opposite Green Hydrogen and Scandinavian Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Hydrogen position performs unexpectedly, Scandinavian Medical 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 Scandinavian Medical will offset losses from the drop in Scandinavian Medical's long position.| Green Hydrogen vs. Ambu AS | Green Hydrogen vs. GN Store Nord | Green Hydrogen vs. Bavarian Nordic | Green Hydrogen vs. FLSmidth Co |
| Scandinavian Medical vs. MapsPeople AS | Scandinavian Medical vs. Penneo AS | Scandinavian Medical vs. Dataproces Group AS | Scandinavian Medical vs. Orderyoyo 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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