Correlation Between Neoen SA and Hydrogene
Can any of the company-specific risk be diversified away by investing in both Neoen 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 Neoen SA and Hydrogene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neoen SA and Hydrogene De France, you can compare the effects of market volatilities on Neoen 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 Neoen SA with a short position of Hydrogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neoen SA and Hydrogene.
Diversification Opportunities for Neoen SA and Hydrogene
Weak diversification
The 3 months correlation between Neoen and Hydrogene is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Neoen 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 Neoen 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 Neoen 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 Neoen SA i.e., Neoen SA and Hydrogene go up and down completely randomly.
Pair Corralation between Neoen SA and Hydrogene
Assuming the 90 days trading horizon Neoen SA is expected to generate 0.64 times more return on investment than Hydrogene. However, Neoen SA is 1.55 times less risky than Hydrogene. It trades about 0.04 of its potential returns per unit of risk. Hydrogene De France is currently generating about -0.06 per unit of risk. If you would invest 3,124 in Neoen SA on November 19, 2024 and sell it today you would earn a total of 861.00 from holding Neoen SA or generate 27.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neoen SA vs. Hydrogene De France
Performance |
| Timeline |
| Neoen SA |
| Hydrogene De France |
Neoen SA and Hydrogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neoen SA and Hydrogene
The main advantage of trading using opposite Neoen SA and Hydrogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neoen 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.| Neoen SA vs. Voltalia SA | Neoen SA vs. Gaztransport Technigaz SAS | Neoen SA vs. Worldline SA | Neoen SA vs. Rubis SCA |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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