Correlation Between Photon Energy and HARDWARIO

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

By analyzing existing cross correlation between Photon Energy NV and HARDWARIO as, you can compare the effects of market volatilities on Photon Energy and HARDWARIO 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 Photon Energy with a short position of HARDWARIO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Photon Energy and HARDWARIO.

Diversification Opportunities for Photon Energy and HARDWARIO

0.0

Correlation Coefficient

Photon Energy  HARDWARIO

Pay attention - limited upside

The 3 months correlation between Photon and HARDWARIO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Photon Energy NV and HARDWARIO as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HARDWARIO as and Photon Energy 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 Photon Energy NV are associated (or correlated) with HARDWARIO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HARDWARIO as has no effect on the direction of Photon Energy i.e., Photon Energy and HARDWARIO go up and down completely randomly.

Pair Corralation between Photon Energy and HARDWARIO

If you would invest (100.00) in Photon Energy NV on April 24, 2025 and sell it today you would earn a total of  100.00  from holding Photon Energy NV or generate -100.0% return on investment over 90 days.

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

Photon Energy NV  vs.  HARDWARIO as

Photon Energy NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Photon Energy NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Photon Energy is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

HARDWARIO as

Risk-Adjusted Performance

Very Weak

Over the last 90 days HARDWARIO as has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, HARDWARIO is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Photon Energy and HARDWARIO

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

The idea behind Photon Energy NV and HARDWARIO as 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.

Check out your portfolio center.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.