Correlation Between Melhus Sparebank and HydrogenPro
Can any of the company-specific risk be diversified away by investing in both Melhus Sparebank and HydrogenPro 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 Melhus Sparebank and HydrogenPro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Melhus Sparebank and HydrogenPro AS, you can compare the effects of market volatilities on Melhus Sparebank and HydrogenPro 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 Melhus Sparebank with a short position of HydrogenPro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Melhus Sparebank and HydrogenPro.
Diversification Opportunities for Melhus Sparebank and HydrogenPro
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Melhus and HydrogenPro is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Melhus Sparebank and HydrogenPro AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HydrogenPro AS and Melhus Sparebank 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 Melhus Sparebank are associated (or correlated) with HydrogenPro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HydrogenPro AS has no effect on the direction of Melhus Sparebank i.e., Melhus Sparebank and HydrogenPro go up and down completely randomly.
Pair Corralation between Melhus Sparebank and HydrogenPro
Assuming the 90 days trading horizon Melhus Sparebank is expected to generate 0.27 times more return on investment than HydrogenPro. However, Melhus Sparebank is 3.68 times less risky than HydrogenPro. It trades about 0.04 of its potential returns per unit of risk. HydrogenPro AS is currently generating about -0.07 per unit of risk. If you would invest 13,388 in Melhus Sparebank on September 14, 2024 and sell it today you would earn a total of 2,932 from holding Melhus Sparebank or generate 21.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Melhus Sparebank vs. HydrogenPro AS
Performance |
| Timeline |
| Melhus Sparebank |
| HydrogenPro AS |
Melhus Sparebank and HydrogenPro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Melhus Sparebank and HydrogenPro
The main advantage of trading using opposite Melhus Sparebank and HydrogenPro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melhus Sparebank position performs unexpectedly, HydrogenPro 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 HydrogenPro will offset losses from the drop in HydrogenPro's long position.| Melhus Sparebank vs. Sparebank 1 Nord Norge | Melhus Sparebank vs. Aurskog Sparebank | Melhus Sparebank vs. Helgeland Sparebank |
| HydrogenPro vs. Vow Green Metals | HydrogenPro vs. Clean Seas Seafood | HydrogenPro vs. Bien Sparebank ASA | HydrogenPro vs. Melhus Sparebank |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets |