Correlation Between Hydrogene and Spartoo SAS
Can any of the company-specific risk be diversified away by investing in both Hydrogene and Spartoo 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 Spartoo 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 Spartoo SAS, you can compare the effects of market volatilities on Hydrogene and Spartoo 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 Spartoo SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrogene and Spartoo SAS.
Diversification Opportunities for Hydrogene and Spartoo SAS
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hydrogene and Spartoo is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogene De France and Spartoo SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spartoo 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 Spartoo SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spartoo SAS has no effect on the direction of Hydrogene i.e., Hydrogene and Spartoo SAS go up and down completely randomly.
Pair Corralation between Hydrogene and Spartoo SAS
Assuming the 90 days trading horizon Hydrogene De France is expected to under-perform the Spartoo SAS. But the stock apears to be less risky and, when comparing its historical volatility, Hydrogene De France is 1.18 times less risky than Spartoo SAS. The stock trades about -0.46 of its potential returns per unit of risk. The Spartoo SAS is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 49.00 in Spartoo SAS on August 28, 2024 and sell it today you would lose (7.00) from holding Spartoo SAS or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hydrogene De France vs. Spartoo SAS
Performance |
| Timeline |
| Hydrogene De France |
| Spartoo SAS |
Hydrogene and Spartoo SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydrogene and Spartoo SAS
The main advantage of trading using opposite Hydrogene and Spartoo SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrogene position performs unexpectedly, Spartoo 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 Spartoo SAS will offset losses from the drop in Spartoo SAS's long position.| Hydrogene vs. Lexibook Linguistic Electronic | Hydrogene vs. Manitou BF SA | Hydrogene vs. Ossiam Minimum Variance | Hydrogene vs. Granite 3x LVMH |
| Spartoo SAS vs. LVMH Mot Hennessy | Spartoo SAS vs. LOreal SA | Spartoo SAS vs. Hermes International SCA | Spartoo SAS vs. Manitou BF SA |
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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