Correlation Between Hydrogene and Qwamplify

Can any of the company-specific risk be diversified away by investing in both Hydrogene and Qwamplify 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 Qwamplify 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 Qwamplify SA, you can compare the effects of market volatilities on Hydrogene and Qwamplify 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 Qwamplify. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrogene and Qwamplify.

Diversification Opportunities for Hydrogene and Qwamplify

0.06

Correlation Coefficient

Hydrogene  Qwamplify

Significant diversification

The 3 months correlation between Hydrogene and Qwamplify is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogene De France and Qwamplify SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qwamplify SA 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 Qwamplify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qwamplify SA has no effect on the direction of Hydrogene i.e., Hydrogene and Qwamplify go up and down completely randomly.

Pair Corralation between Hydrogene and Qwamplify

Assuming the 90 days trading horizon Hydrogene De France is expected to under-perform the Qwamplify. But the stock apears to be less risky and, when comparing its historical volatility, Hydrogene De France is 2.21 times less risky than Qwamplify. The stock trades about -0.09 of its potential returns per unit of risk. The Qwamplify SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  220.00  in Qwamplify SA on April 24, 2025 and sell it today you would earn a total of  6.00  from holding Qwamplify SA or generate 2.73% return on investment over 90 days.

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

Hydrogene De France  vs.  Qwamplify SA

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.

Qwamplify SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Qwamplify SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Qwamplify may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Hydrogene and Qwamplify

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

The idea behind Hydrogene De France and Qwamplify SA 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.