Correlation Between Hydrogen Engine and Energizer Holdings
Can any of the company-specific risk be diversified away by investing in both Hydrogen Engine and Energizer Holdings 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 Hydrogen Engine and Energizer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hydrogen Engine Center and Energizer Holdings, you can compare the effects of market volatilities on Hydrogen Engine and Energizer Holdings 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 Hydrogen Engine with a short position of Energizer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrogen Engine and Energizer Holdings.
Diversification Opportunities for Hydrogen Engine and Energizer Holdings
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hydrogen and Energizer is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogen Engine Center and Energizer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energizer Holdings and Hydrogen Engine 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 Hydrogen Engine Center are associated (or correlated) with Energizer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energizer Holdings has no effect on the direction of Hydrogen Engine i.e., Hydrogen Engine and Energizer Holdings go up and down completely randomly.
Pair Corralation between Hydrogen Engine and Energizer Holdings
Given the investment horizon of 90 days Hydrogen Engine Center is expected to generate 42.25 times more return on investment than Energizer Holdings. However, Hydrogen Engine is 42.25 times more volatile than Energizer Holdings. It trades about 0.1 of its potential returns per unit of risk. Energizer Holdings is currently generating about 0.03 per unit of risk. If you would invest 0.09 in Hydrogen Engine Center on September 3, 2024 and sell it today you would earn a total of 0.56 from holding Hydrogen Engine Center or generate 622.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hydrogen Engine Center vs. Energizer Holdings
Performance |
| Timeline |
| Hydrogen Engine Center |
| Energizer Holdings |
Hydrogen Engine and Energizer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydrogen Engine and Energizer Holdings
The main advantage of trading using opposite Hydrogen Engine and Energizer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrogen Engine position performs unexpectedly, Energizer Holdings 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 Energizer Holdings will offset losses from the drop in Energizer Holdings' long position.| Hydrogen Engine vs. Hydrogen Hybrid Technologies | Hydrogen Engine vs. Manhattan Scients | Hydrogen Engine vs. SunHydrogen | Hydrogen Engine vs. AFC Energy plc |
| Energizer Holdings vs. Acuity Brands | Energizer Holdings vs. Espey Mfg Electronics | Energizer Holdings vs. Preformed Line Products | Energizer Holdings vs. Kimball Electronics |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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