Correlation Between Newhydrogen and SinglePoint

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

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

Diversification Opportunities for Newhydrogen and SinglePoint

0.0

Correlation Coefficient

Newhydrogen  SinglePoint

Pay attention - limited upside

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

Pair Corralation between Newhydrogen and SinglePoint

If you would invest  0.47  in Newhydrogen on December 5, 2024 and sell it today you would earn a total of  1.02  from holding Newhydrogen or generate 217.02% return on investment over 90 days.

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

Newhydrogen  vs.  SinglePoint

Newhydrogen

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Newhydrogen are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Newhydrogen demonstrated solid returns over the last few months and may actually be approaching a breakup point.

SinglePoint

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Newhydrogen and SinglePoint

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

The idea behind Newhydrogen and SinglePoint 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.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.