Correlation Between Fusion Fuel and SPDR SP

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

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

Diversification Opportunities for Fusion Fuel and SPDR SP

-0.46

Correlation Coefficient

Fusion Fuel  SPDR SP

Very good diversification

The 3 months correlation between Fusion and SPDR is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fusion Fuel Green and SPDR SP Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Oil and Fusion Fuel 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 Fusion Fuel Green are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Oil has no effect on the direction of Fusion Fuel i.e., Fusion Fuel and SPDR SP go up and down completely randomly.

Pair Corralation between Fusion Fuel and SPDR SP

Given the investment horizon of 90 days Fusion Fuel Green is expected to under-perform the SPDR SP. In addition to that, Fusion Fuel is 6.01 times more volatile than SPDR SP Oil. It trades about -0.06 of its total potential returns per unit of risk. SPDR SP Oil is currently generating about 0.06 per unit of volatility. If you would invest  6,235  in SPDR SP Oil on May 16, 2025 and sell it today you would earn a total of  412.00  from holding SPDR SP Oil or generate 6.61% return on investment over 90 days.

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

Fusion Fuel Green  vs.  SPDR SP Oil

Fusion Fuel Green

Risk-Adjusted Performance

Weakest

Over the last 90 days Fusion Fuel Green has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

SPDR SP Oil

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR SP Oil are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, SPDR SP may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Fusion Fuel and SPDR SP

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

The idea behind Fusion Fuel Green and SPDR SP Oil 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.