Correlation Between Hydrogene and Waga Energy
Can any of the company-specific risk be diversified away by investing in both Hydrogene and Waga Energy 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 Waga Energy 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 Waga Energy SA, you can compare the effects of market volatilities on Hydrogene and Waga Energy 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 Waga Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrogene and Waga Energy.
Diversification Opportunities for Hydrogene and Waga Energy
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hydrogene and Waga is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogene De France and Waga Energy SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waga Energy 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 Waga Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waga Energy SA has no effect on the direction of Hydrogene i.e., Hydrogene and Waga Energy go up and down completely randomly.
Pair Corralation between Hydrogene and Waga Energy
Assuming the 90 days trading horizon Hydrogene De France is expected to under-perform the Waga Energy. In addition to that, Hydrogene is 1.3 times more volatile than Waga Energy SA. It trades about -0.12 of its total potential returns per unit of risk. Waga Energy SA is currently generating about 0.04 per unit of volatility. If you would invest 1,440 in Waga Energy SA on November 2, 2024 and sell it today you would earn a total of 100.00 from holding Waga Energy SA or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.06% |
| Values | Daily Returns |
Hydrogene De France vs. Waga Energy SA
Performance |
| Timeline |
| Hydrogene De France |
| Waga Energy SA |
Hydrogene and Waga Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydrogene and Waga Energy
The main advantage of trading using opposite Hydrogene and Waga Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrogene position performs unexpectedly, Waga Energy 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 Waga Energy will offset losses from the drop in Waga Energy's long position.| Hydrogene vs. Hydrogen Refueling Solutions | Hydrogene vs. Lhyfe SA | Hydrogene vs. Neoen SA | Hydrogene vs. Voltalia SA |
| Waga Energy vs. OVH Groupe SAS | Waga Energy vs. Hydrogene De France | Waga Energy vs. Neoen SA | Waga Energy vs. Haffner Energy 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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