Correlation Between Hydrogene and Hydrogen Refueling
Can any of the company-specific risk be diversified away by investing in both Hydrogene and Hydrogen Refueling 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 Hydrogen Refueling 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 Hydrogen Refueling Solutions, you can compare the effects of market volatilities on Hydrogene and Hydrogen Refueling 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 Hydrogen Refueling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrogene and Hydrogen Refueling.
Diversification Opportunities for Hydrogene and Hydrogen Refueling
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hydrogene and Hydrogen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogene De France and Hydrogen Refueling Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydrogen Refueling 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 Hydrogen Refueling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydrogen Refueling has no effect on the direction of Hydrogene i.e., Hydrogene and Hydrogen Refueling go up and down completely randomly.
Pair Corralation between Hydrogene and Hydrogen Refueling
Assuming the 90 days trading horizon Hydrogene De France is expected to generate 0.76 times more return on investment than Hydrogen Refueling. However, Hydrogene De France is 1.32 times less risky than Hydrogen Refueling. It trades about -0.13 of its potential returns per unit of risk. Hydrogen Refueling Solutions is currently generating about -0.12 per unit of risk. If you would invest 1,378 in Hydrogene De France on August 31, 2024 and sell it today you would lose (1,046) from holding Hydrogene De France or give up 75.91% 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. Hydrogen Refueling Solutions
Performance |
| Timeline |
| Hydrogene De France |
| Hydrogen Refueling |
Hydrogene and Hydrogen Refueling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydrogene and Hydrogen Refueling
The main advantage of trading using opposite Hydrogene and Hydrogen Refueling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrogene position performs unexpectedly, Hydrogen Refueling 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 Hydrogen Refueling will offset losses from the drop in Hydrogen Refueling's long position.| Hydrogene vs. Lexibook Linguistic Electronic | Hydrogene vs. Kumulus Vape SA | Hydrogene vs. Manitou BF SA | Hydrogene vs. Ossiam Minimum Variance |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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