Correlation Between Alimentation Couchen and Hydrogene

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

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

Diversification Opportunities for Alimentation Couchen and Hydrogene

0.04

Correlation Coefficient

Alimentation Couchen  Hydrogene

Significant diversification

The 3 months correlation between Alimentation and Hydrogene is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Alimentation Couchen Tard 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 Alimentation Couchen 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 Alimentation Couchen Tard 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 Alimentation Couchen i.e., Alimentation Couchen and Hydrogene go up and down completely randomly.

Pair Corralation between Alimentation Couchen and Hydrogene

Assuming the 90 days trading horizon Alimentation Couchen Tard is expected to generate 1.02 times more return on investment than Hydrogene. However, Alimentation Couchen is 1.02 times more volatile than Hydrogene De France. It trades about 0.06 of its potential returns per unit of risk. Hydrogene De France is currently generating about -0.09 per unit of risk. If you would invest  7,223  in Alimentation Couchen Tard on April 24, 2025 and sell it today you would earn a total of  458.00  from holding Alimentation Couchen Tard or generate 6.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Alimentation Couchen Tard  vs.  Hydrogene De France

Alimentation Couchen Tard

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Alimentation Couchen Tard are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Alimentation Couchen may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 latest weak performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Alimentation Couchen and Hydrogene

The main advantage of trading using opposite Alimentation Couchen and Hydrogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alimentation Couchen 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 Alimentation Couchen Tard 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.