Correlation Between Hydrogene and Maat Pharma
Can any of the company-specific risk be diversified away by investing in both Hydrogene and Maat Pharma 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 Maat Pharma 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 Maat Pharma SA, you can compare the effects of market volatilities on Hydrogene and Maat Pharma 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 Maat Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrogene and Maat Pharma.
Diversification Opportunities for Hydrogene and Maat Pharma
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hydrogene and Maat is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogene De France and Maat Pharma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maat Pharma 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 Maat Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maat Pharma SA has no effect on the direction of Hydrogene i.e., Hydrogene and Maat Pharma go up and down completely randomly.
Pair Corralation between Hydrogene and Maat Pharma
Assuming the 90 days trading horizon Hydrogene De France is expected to under-perform the Maat Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Hydrogene De France is 1.11 times less risky than Maat Pharma. The stock trades about -0.18 of its potential returns per unit of risk. The Maat Pharma SA is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 956.00 in Maat Pharma SA on September 3, 2024 and sell it today you would lose (162.00) from holding Maat Pharma SA or give up 16.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hydrogene De France vs. Maat Pharma SA
Performance |
| Timeline |
| Hydrogene De France |
| Maat Pharma SA |
Hydrogene and Maat Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydrogene and Maat Pharma
The main advantage of trading using opposite Hydrogene and Maat Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrogene position performs unexpectedly, Maat Pharma 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 Maat Pharma will offset losses from the drop in Maat Pharma'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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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