Correlation Between Afyren SAS and Hydrogene

Can any of the company-specific risk be diversified away by investing in both Afyren SAS 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 Afyren SAS and Hydrogene into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Afyren SAS and Hydrogene De France, you can compare the effects of market volatilities on Afyren SAS 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 Afyren SAS with a short position of Hydrogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afyren SAS and Hydrogene.

Diversification Opportunities for Afyren SAS and Hydrogene

-0.35

Correlation Coefficient

Afyren SAS  Hydrogene

Very good diversification

The 3 months correlation between Afyren and Hydrogene is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Afyren SAS 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 Afyren SAS 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 Afyren SAS 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 Afyren SAS i.e., Afyren SAS and Hydrogene go up and down completely randomly.

Pair Corralation between Afyren SAS and Hydrogene

Assuming the 90 days trading horizon Afyren SAS is expected to under-perform the Hydrogene. But the stock apears to be less risky and, when comparing its historical volatility, Afyren SAS is 1.11 times less risky than Hydrogene. The stock trades about -0.08 of its potential returns per unit of risk. The Hydrogene De France is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  410.00  in Hydrogene De France on December 23, 2024 and sell it today you would earn a total of  238.00  from holding Hydrogene De France or generate 58.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Afyren SAS  vs.  Hydrogene De France

Afyren SAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Afyren SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Hydrogene De France

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hydrogene De France are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Hydrogene sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Afyren SAS and Hydrogene

The main advantage of trading using opposite Afyren SAS and Hydrogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afyren SAS 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.

The idea behind Afyren SAS and Hydrogene De France pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.