Correlation Between Affluent Medical and Hydrogene

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

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

Diversification Opportunities for Affluent Medical and Hydrogene

-0.02

Correlation Coefficient

Affluent Medical  Hydrogene

Good diversification

The 3 months correlation between Affluent and Hydrogene is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Affluent Medical 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 Affluent Medical 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 Affluent Medical 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 Affluent Medical i.e., Affluent Medical and Hydrogene go up and down completely randomly.

Pair Corralation between Affluent Medical and Hydrogene

Assuming the 90 days trading horizon Affluent Medical SAS is expected to under-perform the Hydrogene. In addition to that, Affluent Medical is 1.28 times more volatile than Hydrogene De France. It trades about -0.04 of its total potential returns per unit of risk. Hydrogene De France is currently generating about -0.05 per unit of volatility. If you would invest  532.00  in Hydrogene De France on April 21, 2025 and sell it today you would lose (36.00) from holding Hydrogene De France or give up 6.77% of portfolio value over 90 days.

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

Affluent Medical SAS  vs.  Hydrogene De France

Affluent Medical SAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Affluent Medical SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Affluent Medical is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Hydrogene De France

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hydrogene De France has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Hydrogene is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Affluent Medical and Hydrogene

The main advantage of trading using opposite Affluent Medical and Hydrogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affluent Medical 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 Affluent Medical 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.