Correlation Between Hydrogene and Neoen SA
Can any of the company-specific risk be diversified away by investing in both Hydrogene and Neoen 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 Neoen 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 Neoen SA, you can compare the effects of market volatilities on Hydrogene and Neoen 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 Neoen SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrogene and Neoen SA.
Diversification Opportunities for Hydrogene and Neoen SA
Pay attention - limited upside
The 3 months correlation between Hydrogene and Neoen is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogene De France and Neoen SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neoen 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 Neoen SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neoen SA has no effect on the direction of Hydrogene i.e., Hydrogene and Neoen SA go up and down completely randomly.
Pair Corralation between Hydrogene and Neoen SA
Assuming the 90 days trading horizon Hydrogene De France is expected to under-perform the Neoen SA. In addition to that, Hydrogene is 1.41 times more volatile than Neoen SA. It trades about -0.13 of its total potential returns per unit of risk. Neoen SA is currently generating about 0.05 per unit of volatility. If you would invest 2,913 in Neoen SA on September 2, 2024 and sell it today you would earn a total of 1,041 from holding Neoen SA or generate 35.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hydrogene De France vs. Neoen SA
Performance |
| Timeline |
| Hydrogene De France |
| Neoen SA |
Hydrogene and Neoen SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydrogene and Neoen SA
The main advantage of trading using opposite Hydrogene and Neoen SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrogene position performs unexpectedly, Neoen 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 Neoen SA will offset losses from the drop in Neoen SA's long position.| Hydrogene vs. Hydrogen Refueling Solutions | Hydrogene vs. Lhyfe SA | Hydrogene vs. Neoen SA | Hydrogene vs. Voltalia SA |
| Neoen SA vs. Voltalia SA | Neoen SA vs. Gaztransport Technigaz SAS | Neoen SA vs. Worldline SA | Neoen SA vs. Rubis SCA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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