Correlation Between Lhyfe SA and Hydrogene
Can any of the company-specific risk be diversified away by investing in both Lhyfe SA and Hydrogene 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 Lhyfe SA and Hydrogene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lhyfe SA and Hydrogene De France, you can compare the effects of market volatilities on Lhyfe SA and Hydrogene 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 Lhyfe SA with a short position of Hydrogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lhyfe SA and Hydrogene.
Diversification Opportunities for Lhyfe SA and Hydrogene
Poor diversification
The 3 months correlation between Lhyfe and Hydrogene is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Lhyfe SA and Hydrogene De France in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydrogene De France and Lhyfe SA 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 Lhyfe SA are associated (or correlated) with Hydrogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydrogene De France has no effect on the direction of Lhyfe SA i.e., Lhyfe SA and Hydrogene go up and down completely randomly.
Pair Corralation between Lhyfe SA and Hydrogene
Assuming the 90 days trading horizon Lhyfe SA is expected to generate 2.3 times more return on investment than Hydrogene. However, Lhyfe SA is 2.3 times more volatile than Hydrogene De France. It trades about 0.14 of its potential returns per unit of risk. Hydrogene De France is currently generating about -0.07 per unit of risk. If you would invest 298.00 in Lhyfe SA on November 3, 2024 and sell it today you would earn a total of 33.00 from holding Lhyfe SA or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lhyfe SA vs. Hydrogene De France
Performance |
| Timeline |
| Lhyfe SA |
| Hydrogene De France |
Lhyfe SA and Hydrogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lhyfe SA and Hydrogene
The main advantage of trading using opposite Lhyfe SA and Hydrogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lhyfe SA position performs unexpectedly, Hydrogene 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 Hydrogene will offset losses from the drop in Hydrogene's long position.| Lhyfe SA vs. Hydrogene De France | Lhyfe SA vs. Hydrogen Refueling Solutions | Lhyfe SA vs. Neoen SA | Lhyfe SA vs. Hopium SAS |
| Hydrogene vs. Hydrogen Refueling Solutions | Hydrogene vs. Lhyfe SA | Hydrogene vs. Neoen SA | Hydrogene vs. Voltalia 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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