Correlation Between HydroGraph Clean and Danimer Scientific

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

By analyzing existing cross correlation between HydroGraph Clean Power and Danimer Scientific, you can compare the effects of market volatilities on HydroGraph Clean and Danimer Scientific 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 HydroGraph Clean with a short position of Danimer Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of HydroGraph Clean and Danimer Scientific.

Diversification Opportunities for HydroGraph Clean and Danimer Scientific

0.0

Correlation Coefficient

HydroGraph Clean  Danimer Scientific

Pay attention - limited upside

The 3 months correlation between HydroGraph and Danimer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HydroGraph Clean Power and Danimer Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danimer Scientific and HydroGraph Clean 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 HydroGraph Clean Power are associated (or correlated) with Danimer Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danimer Scientific has no effect on the direction of HydroGraph Clean i.e., HydroGraph Clean and Danimer Scientific go up and down completely randomly.

Pair Corralation between HydroGraph Clean and Danimer Scientific

If you would invest (100.00) in HydroGraph Clean Power on December 30, 2024 and sell it today you would earn a total of  100.00  from holding HydroGraph Clean Power or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

HydroGraph Clean Power  vs.  Danimer Scientific

HydroGraph Clean Power

Risk-Adjusted Performance

Very Weak

Over the last 90 days HydroGraph Clean Power has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, HydroGraph Clean is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Danimer Scientific

Risk-Adjusted Performance

Very Weak

Over the last 90 days Danimer Scientific 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 primary 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.

Pair Trading with HydroGraph Clean and Danimer Scientific

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

The idea behind HydroGraph Clean Power and Danimer Scientific 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.