Correlation Between Medincell and Hydrogen Refueling

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

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

Diversification Opportunities for Medincell and Hydrogen Refueling

-0.27

Correlation Coefficient

Medincell  Hydrogen Refueling

Very good diversification

The 3 months correlation between Medincell and Hydrogen is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Medincell SA and Hydrogen Refueling Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hydrogen Refueling and Medincell 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 Medincell SA are associated (or correlated) with Hydrogen Refueling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hydrogen Refueling has no effect on the direction of Medincell i.e., Medincell and Hydrogen Refueling go up and down completely randomly.

Pair Corralation between Medincell and Hydrogen Refueling

Assuming the 90 days trading horizon Medincell SA is expected to under-perform the Hydrogen Refueling. But the stock apears to be less risky and, when comparing its historical volatility, Medincell SA is 1.03 times less risky than Hydrogen Refueling. The stock trades about -0.08 of its potential returns per unit of risk. The Hydrogen Refueling Solutions is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  308.00  in Hydrogen Refueling Solutions on October 20, 2024 and sell it today you would earn a total of  35.00  from holding Hydrogen Refueling Solutions or generate 11.36% return on investment over 90 days.

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

Medincell SA  vs.  Hydrogen Refueling Solutions

Medincell SA

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Medincell SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Medincell is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Hydrogen Refueling

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hydrogen Refueling Solutions 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 February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Medincell and Hydrogen Refueling

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

The idea behind Medincell SA and Hydrogen Refueling Solutions 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.