Correlation Between FuelCell Energy and Pharma Mar
Can any of the company-specific risk be diversified away by investing in both FuelCell Energy and Pharma Mar 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 FuelCell Energy and Pharma Mar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelCell Energy and Pharma Mar SAU, you can compare the effects of market volatilities on FuelCell Energy and Pharma Mar 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 FuelCell Energy with a short position of Pharma Mar. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelCell Energy and Pharma Mar.
Diversification Opportunities for FuelCell Energy and Pharma Mar
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FuelCell and Pharma is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and Pharma Mar SAU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pharma Mar SAU and FuelCell 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 FuelCell Energy are associated (or correlated) with Pharma Mar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pharma Mar SAU has no effect on the direction of FuelCell Energy i.e., FuelCell Energy and Pharma Mar go up and down completely randomly.
Pair Corralation between FuelCell Energy and Pharma Mar
Assuming the 90 days trading horizon FuelCell Energy is expected to generate 4.08 times more return on investment than Pharma Mar. However, FuelCell Energy is 4.08 times more volatile than Pharma Mar SAU. It trades about 0.03 of its potential returns per unit of risk. Pharma Mar SAU is currently generating about 0.03 per unit of risk. If you would invest 1,110 in FuelCell Energy on August 28, 2024 and sell it today you would lose (64.00) from holding FuelCell Energy or give up 5.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
FuelCell Energy vs. Pharma Mar SAU
Performance |
| Timeline |
| FuelCell Energy |
| Pharma Mar SAU |
FuelCell Energy and Pharma Mar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FuelCell Energy and Pharma Mar
The main advantage of trading using opposite FuelCell Energy and Pharma Mar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelCell Energy position performs unexpectedly, Pharma Mar 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 Pharma Mar will offset losses from the drop in Pharma Mar's long position.| FuelCell Energy vs. Zegona Communications Plc | FuelCell Energy vs. Aeorema Communications Plc | FuelCell Energy vs. PureTech Health plc | FuelCell Energy vs. Vitec Software Group |
| Pharma Mar vs. Take Two Interactive Software | Pharma Mar vs. Bytes Technology | Pharma Mar vs. Auction Technology Group | Pharma Mar vs. Sabien Technology Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |