Correlation Between Powertap Hydrogen and Fusion Fuel

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

By analyzing existing cross correlation between Powertap Hydrogen Capital and Fusion Fuel Green, you can compare the effects of market volatilities on Powertap Hydrogen and Fusion Fuel 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 Powertap Hydrogen with a short position of Fusion Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powertap Hydrogen and Fusion Fuel.

Diversification Opportunities for Powertap Hydrogen and Fusion Fuel

-0.21

Correlation Coefficient

Powertap Hydrogen  Fusion Fuel

Very good diversification

The 3 months correlation between Powertap and Fusion is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Powertap Hydrogen Capital and Fusion Fuel Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fusion Fuel Green and Powertap Hydrogen 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 Powertap Hydrogen Capital are associated (or correlated) with Fusion Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fusion Fuel Green has no effect on the direction of Powertap Hydrogen i.e., Powertap Hydrogen and Fusion Fuel go up and down completely randomly.

Pair Corralation between Powertap Hydrogen and Fusion Fuel

If you would invest  412.00  in Fusion Fuel Green on September 10, 2025 and sell it today you would lose (10.00) from holding Fusion Fuel Green or give up 2.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Powertap Hydrogen Capital  vs.  Fusion Fuel Green

Powertap Hydrogen Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days Powertap Hydrogen Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Powertap Hydrogen is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Fusion Fuel Green

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fusion Fuel Green are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Fusion Fuel is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Powertap Hydrogen and Fusion Fuel

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

The idea behind Powertap Hydrogen Capital and Fusion Fuel Green 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.