Correlation Between Hydrogene and Lhyfe SA
Can any of the company-specific risk be diversified away by investing in both Hydrogene and Lhyfe SA 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 Lhyfe SA 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 Lhyfe SA, you can compare the effects of market volatilities on Hydrogene and Lhyfe SA 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 Lhyfe SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrogene and Lhyfe SA.
Diversification Opportunities for Hydrogene and Lhyfe SA
Very weak diversification
The 3 months correlation between Hydrogene and Lhyfe is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogene De France and Lhyfe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lhyfe SA 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 Lhyfe SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lhyfe SA has no effect on the direction of Hydrogene i.e., Hydrogene and Lhyfe SA go up and down completely randomly.
Pair Corralation between Hydrogene and Lhyfe SA
Assuming the 90 days trading horizon Hydrogene De France is expected to generate 1.83 times more return on investment than Lhyfe SA. However, Hydrogene is 1.83 times more volatile than Lhyfe SA. It trades about 0.18 of its potential returns per unit of risk. Lhyfe SA is currently generating about 0.13 per unit of risk. If you would invest 414.00 in Hydrogene De France on November 29, 2024 and sell it today you would earn a total of 187.00 from holding Hydrogene De France or generate 45.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hydrogene De France vs. Lhyfe SA
Performance |
| Timeline |
| Hydrogene De France |
| Lhyfe SA |
Hydrogene and Lhyfe SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydrogene and Lhyfe SA
The main advantage of trading using opposite Hydrogene and Lhyfe SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrogene position performs unexpectedly, Lhyfe SA 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 Lhyfe SA will offset losses from the drop in Lhyfe SA's long position.| Hydrogene vs. Hydrogen Refueling Solutions | Hydrogene vs. Lhyfe SA | Hydrogene vs. Neoen SA | Hydrogene vs. Voltalia SA |
| Lhyfe SA vs. Hydrogene De France | Lhyfe SA vs. Hydrogen Refueling Solutions | Lhyfe SA vs. Neoen SA | Lhyfe SA vs. Hopium SAS |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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