Correlation Between H Lundbeck and Green Hydrogen
Can any of the company-specific risk be diversified away by investing in both H Lundbeck and Green Hydrogen 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 H Lundbeck and Green Hydrogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H Lundbeck AS and Green Hydrogen Systems, you can compare the effects of market volatilities on H Lundbeck and Green Hydrogen 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 H Lundbeck with a short position of Green Hydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of H Lundbeck and Green Hydrogen.
Diversification Opportunities for H Lundbeck and Green Hydrogen
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between HLUN-B and Green is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding H Lundbeck AS and Green Hydrogen Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Hydrogen Systems and H Lundbeck 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 H Lundbeck AS are associated (or correlated) with Green Hydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Hydrogen Systems has no effect on the direction of H Lundbeck i.e., H Lundbeck and Green Hydrogen go up and down completely randomly.
Pair Corralation between H Lundbeck and Green Hydrogen
Assuming the 90 days trading horizon H Lundbeck AS is expected to generate 0.25 times more return on investment than Green Hydrogen. However, H Lundbeck AS is 4.05 times less risky than Green Hydrogen. It trades about 0.08 of its potential returns per unit of risk. Green Hydrogen Systems is currently generating about -0.02 per unit of risk. If you would invest 2,588 in H Lundbeck AS on August 26, 2024 and sell it today you would earn a total of 1,940 from holding H Lundbeck AS or generate 74.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
H Lundbeck AS vs. Green Hydrogen Systems
Performance |
| Timeline |
| H Lundbeck AS |
| Green Hydrogen Systems |
H Lundbeck and Green Hydrogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H Lundbeck and Green Hydrogen
The main advantage of trading using opposite H Lundbeck and Green Hydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H Lundbeck position performs unexpectedly, Green Hydrogen 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 Green Hydrogen will offset losses from the drop in Green Hydrogen's long position.| H Lundbeck vs. H Lundbeck AS | H Lundbeck vs. GN Store Nord | H Lundbeck vs. FLSmidth Co | H Lundbeck vs. ALK Abell AS |
| Green Hydrogen vs. Ambu AS | Green Hydrogen vs. GN Store Nord | Green Hydrogen vs. Bavarian Nordic | Green Hydrogen vs. FLSmidth Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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