Correlation Between Hydrogene and Hopium SAS

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

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

Diversification Opportunities for Hydrogene and Hopium SAS

0.69

Correlation Coefficient

Hydrogene  Hopium SAS

Poor diversification

The 3 months correlation between Hydrogene and Hopium is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogene De France and Hopium SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hopium SAS and Hydrogene 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 Hydrogene De France are associated (or correlated) with Hopium SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hopium SAS has no effect on the direction of Hydrogene i.e., Hydrogene and Hopium SAS go up and down completely randomly.

Pair Corralation between Hydrogene and Hopium SAS

Assuming the 90 days trading horizon Hydrogene De France is expected to generate 0.12 times more return on investment than Hopium SAS. However, Hydrogene De France is 8.59 times less risky than Hopium SAS. It trades about -0.07 of its potential returns per unit of risk. Hopium SAS is currently generating about -0.09 per unit of risk. If you would invest  534.00  in Hydrogene De France on April 25, 2025 and sell it today you would lose (44.00) from holding Hydrogene De France or give up 8.24% of portfolio value over 90 days.

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

Hydrogene De France  vs.  Hopium SAS

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.

Hopium SAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hopium SAS 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 August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Hydrogene and Hopium SAS

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

The idea behind Hydrogene De France and Hopium SAS 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.