Correlation Between Fusion Fuel and UGE International
Can any of the company-specific risk be diversified away by investing in both Fusion Fuel and UGE International 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 Fusion Fuel and UGE International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fusion Fuel Green and UGE International, you can compare the effects of market volatilities on Fusion Fuel and UGE International 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 Fusion Fuel with a short position of UGE International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fusion Fuel and UGE International.
Diversification Opportunities for Fusion Fuel and UGE International
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fusion and UGE is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fusion Fuel Green and UGE International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UGE International and Fusion Fuel 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 Fusion Fuel Green are associated (or correlated) with UGE International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UGE International has no effect on the direction of Fusion Fuel i.e., Fusion Fuel and UGE International go up and down completely randomly.
Pair Corralation between Fusion Fuel and UGE International
Assuming the 90 days horizon Fusion Fuel is expected to generate 1.13 times less return on investment than UGE International. In addition to that, Fusion Fuel is 1.39 times more volatile than UGE International. It trades about 0.03 of its total potential returns per unit of risk. UGE International is currently generating about 0.05 per unit of volatility. If you would invest 96.00 in UGE International on August 24, 2024 and sell it today you would earn a total of 50.00 from holding UGE International or generate 52.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.2% |
| Values | Daily Returns |
Fusion Fuel Green vs. UGE International
Performance |
| Timeline |
| Fusion Fuel Green |
| UGE International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fusion Fuel and UGE International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fusion Fuel and UGE International
The main advantage of trading using opposite Fusion Fuel and UGE International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fusion Fuel position performs unexpectedly, UGE International 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 UGE International will offset losses from the drop in UGE International's long position.| Fusion Fuel vs. Fusion Fuel Green | Fusion Fuel vs. Advent Technologies Holdings | Fusion Fuel vs. Eos Energy Enterprises | Fusion Fuel vs. CuriosityStream |
| UGE International vs. Fortum Oyj ADR | UGE International vs. Astra Energy | UGE International vs. Powertap Hydrogen Capital | UGE International vs. Brenmiller Energy Ltd |
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 Stocks Directory module to find actively traded stocks across global markets.
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