Correlation Between Ekinops SA and Hydrogene

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

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

Diversification Opportunities for Ekinops SA and Hydrogene

-0.54

Correlation Coefficient

Ekinops SA  Hydrogene

Excellent diversification

The 3 months correlation between Ekinops and Hydrogene is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA 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 Ekinops SA 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 Ekinops SA 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 Ekinops SA i.e., Ekinops SA and Hydrogene go up and down completely randomly.

Pair Corralation between Ekinops SA and Hydrogene

Assuming the 90 days trading horizon Ekinops SA is expected to generate 2.17 times more return on investment than Hydrogene. However, Ekinops SA is 2.17 times more volatile than Hydrogene De France. It trades about 0.12 of its potential returns per unit of risk. Hydrogene De France is currently generating about -0.07 per unit of risk. If you would invest  331.00  in Ekinops SA on April 25, 2025 and sell it today you would earn a total of  87.00  from holding Ekinops SA or generate 26.28% return on investment over 90 days.

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

Ekinops SA  vs.  Hydrogene De France

Ekinops SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ekinops SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Ekinops SA sustained solid returns over the last few months and may actually be approaching a breakup point.

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 Ekinops SA and Hydrogene

The main advantage of trading using opposite Ekinops SA and Hydrogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA 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 Ekinops SA 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.