Correlation Between Hydrogene and Hopium SAS
Can any of the company-specific risk be diversified away by investing in both Hydrogene and Hopium SAS 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 Hydrogene and Hopium SAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hydrogene De France and Hopium SAS, you can compare the effects of market volatilities on Hydrogene and Hopium SAS 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 Hydrogene with a short position of Hopium SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrogene and Hopium SAS.
Diversification Opportunities for Hydrogene and Hopium SAS
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hydrogene and Hopium is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogene De France and Hopium SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hopium SAS and Hydrogene 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 Hydrogene De France are associated (or correlated) with Hopium SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hopium SAS has no effect on the direction of Hydrogene i.e., Hydrogene and Hopium SAS go up and down completely randomly.
Pair Corralation between Hydrogene and Hopium SAS
Assuming the 90 days trading horizon Hydrogene De France is expected to under-perform the Hopium SAS. In addition to that, Hydrogene is 1.34 times more volatile than Hopium SAS. It trades about -0.44 of its total potential returns per unit of risk. Hopium SAS is currently generating about -0.31 per unit of volatility. If you would invest 1.10 in Hopium SAS on September 2, 2024 and sell it today you would lose (0.21) from holding Hopium SAS or give up 19.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hydrogene De France vs. Hopium SAS
Performance |
| Timeline |
| Hydrogene De France |
| Hopium SAS |
Hydrogene and Hopium SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydrogene and Hopium SAS
The main advantage of trading using opposite Hydrogene and Hopium SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrogene position performs unexpectedly, Hopium SAS 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 Hopium SAS will offset losses from the drop in Hopium SAS's long position.| Hydrogene vs. Hydrogen Refueling Solutions | Hydrogene vs. Lhyfe SA | Hydrogene vs. Neoen SA | Hydrogene vs. Voltalia SA |
| Hopium SAS vs. Fill Up Media | Hopium SAS vs. Bilendi | Hopium SAS vs. Mauna Kea Technologies | Hopium SAS vs. ZCCM Investments Holdings |
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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