Correlation Between Hydrogen Refueling and OVH Groupe

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

By analyzing existing cross correlation between Hydrogen Refueling Solutions and OVH Groupe SAS, you can compare the effects of market volatilities on Hydrogen Refueling and OVH Groupe 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 Hydrogen Refueling with a short position of OVH Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrogen Refueling and OVH Groupe.

Diversification Opportunities for Hydrogen Refueling and OVH Groupe

-0.45

Correlation Coefficient

Hydrogen Refueling  OVH Groupe

Very good diversification

The 3 months correlation between Hydrogen and OVH is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogen Refueling Solutions and OVH Groupe SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OVH Groupe SAS and Hydrogen Refueling 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 Hydrogen Refueling Solutions are associated (or correlated) with OVH Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OVH Groupe SAS has no effect on the direction of Hydrogen Refueling i.e., Hydrogen Refueling and OVH Groupe go up and down completely randomly.

Pair Corralation between Hydrogen Refueling and OVH Groupe

Assuming the 90 days trading horizon Hydrogen Refueling Solutions is expected to generate 1.56 times more return on investment than OVH Groupe. However, Hydrogen Refueling is 1.56 times more volatile than OVH Groupe SAS. It trades about 0.05 of its potential returns per unit of risk. OVH Groupe SAS is currently generating about -0.09 per unit of risk. If you would invest  313.00  in Hydrogen Refueling Solutions on December 29, 2024 and sell it today you would earn a total of  27.00  from holding Hydrogen Refueling Solutions or generate 8.63% return on investment over 90 days.

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

Hydrogen Refueling Solutions  vs.  OVH Groupe SAS

Hydrogen Refueling

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hydrogen Refueling Solutions are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Hydrogen Refueling may actually be approaching a critical reversion point that can send shares even higher in April 2025.

OVH Groupe SAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days OVH Groupe SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Hydrogen Refueling and OVH Groupe

The main advantage of trading using opposite Hydrogen Refueling and OVH Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrogen Refueling position performs unexpectedly, OVH Groupe 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 OVH Groupe will offset losses from the drop in OVH Groupe's long position.

The idea behind Hydrogen Refueling Solutions and OVH Groupe SAS 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.