Correlation Between Hydrogene and Blockchain Group
Can any of the company-specific risk be diversified away by investing in both Hydrogene and Blockchain Group 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 Blockchain Group 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 Blockchain Group SA, you can compare the effects of market volatilities on Hydrogene and Blockchain Group 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 Blockchain Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrogene and Blockchain Group.
Diversification Opportunities for Hydrogene and Blockchain Group
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hydrogene and Blockchain is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogene De France and Blockchain Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Group 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 Blockchain Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Group has no effect on the direction of Hydrogene i.e., Hydrogene and Blockchain Group go up and down completely randomly.
Pair Corralation between Hydrogene and Blockchain Group
Assuming the 90 days trading horizon Hydrogene De France is expected to generate 1.04 times more return on investment than Blockchain Group. However, Hydrogene is 1.04 times more volatile than Blockchain Group SA. It trades about 0.34 of its potential returns per unit of risk. Blockchain Group SA is currently generating about -0.26 per unit of risk. If you would invest 397.00 in Hydrogene De France on December 1, 2024 and sell it today you would earn a total of 273.00 from holding Hydrogene De France or generate 68.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hydrogene De France vs. Blockchain Group SA
Performance |
| Timeline |
| Hydrogene De France |
| Blockchain Group |
Hydrogene and Blockchain Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydrogene and Blockchain Group
The main advantage of trading using opposite Hydrogene and Blockchain Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrogene position performs unexpectedly, Blockchain Group 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 Blockchain Group will offset losses from the drop in Blockchain Group's long position.| Hydrogene vs. Hydrogen Refueling Solutions | Hydrogene vs. Lhyfe SA | Hydrogene vs. Neoen SA | Hydrogene vs. Voltalia SA |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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