Correlation Between Orapi SA and Hydrogene
Can any of the company-specific risk be diversified away by investing in both Orapi 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 Orapi SA and Hydrogene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orapi SA and Hydrogene De France, you can compare the effects of market volatilities on Orapi 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 Orapi SA with a short position of Hydrogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orapi SA and Hydrogene.
Diversification Opportunities for Orapi SA and Hydrogene
Excellent diversification
The 3 months correlation between Orapi and Hydrogene is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Orapi 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 Orapi 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 Orapi 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 Orapi SA i.e., Orapi SA and Hydrogene go up and down completely randomly.
Pair Corralation between Orapi SA and Hydrogene
Assuming the 90 days trading horizon Orapi SA is expected to generate 0.03 times more return on investment than Hydrogene. However, Orapi SA is 29.08 times less risky than Hydrogene. It trades about 0.21 of its potential returns per unit of risk. Hydrogene De France is currently generating about -0.44 per unit of risk. If you would invest 646.00 in Orapi SA on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Orapi SA or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Orapi SA vs. Hydrogene De France
Performance |
| Timeline |
| Orapi SA |
| Hydrogene De France |
Orapi SA and Hydrogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orapi SA and Hydrogene
The main advantage of trading using opposite Orapi SA and Hydrogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orapi 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.| Orapi SA vs. Sensorion SA | Orapi SA vs. Fiducial Office Solutions | Orapi SA vs. Manitou BF SA | Orapi SA vs. Ossiam Minimum Variance |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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