Correlation Between Vivendi SA and Hydrogene
Can any of the company-specific risk be diversified away by investing in both Vivendi 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 Vivendi SA and Hydrogene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivendi SA and Hydrogene De France, you can compare the effects of market volatilities on Vivendi 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 Vivendi SA with a short position of Hydrogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivendi SA and Hydrogene.
Diversification Opportunities for Vivendi SA and Hydrogene
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vivendi and Hydrogene is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Vivendi 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 Vivendi 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 Vivendi 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 Vivendi SA i.e., Vivendi SA and Hydrogene go up and down completely randomly.
Pair Corralation between Vivendi SA and Hydrogene
Assuming the 90 days trading horizon Vivendi SA is expected to generate 0.36 times more return on investment than Hydrogene. However, Vivendi SA is 2.78 times less risky than Hydrogene. It trades about -0.38 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 979.00 in Vivendi SA on September 1, 2024 and sell it today you would lose (110.00) from holding Vivendi SA or give up 11.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Vivendi SA vs. Hydrogene De France
Performance |
| Timeline |
| Vivendi SA |
| Hydrogene De France |
Vivendi SA and Hydrogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivendi SA and Hydrogene
The main advantage of trading using opposite Vivendi SA and Hydrogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivendi 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.| Vivendi SA vs. Vinci SA | Vivendi SA vs. Compagnie de Saint Gobain | Vivendi SA vs. Bouygues SA | Vivendi SA vs. Carrefour SA |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |