Correlation Between FuelCell Energy and Blue Star
Can any of the company-specific risk be diversified away by investing in both FuelCell Energy and Blue Star 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 Blue Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelCell Energy and Blue Star Capital, you can compare the effects of market volatilities on FuelCell Energy and Blue Star 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 Blue Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelCell Energy and Blue Star.
Diversification Opportunities for FuelCell Energy and Blue Star
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between FuelCell and Blue is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and Blue Star Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Star Capital 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 Blue Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Star Capital has no effect on the direction of FuelCell Energy i.e., FuelCell Energy and Blue Star go up and down completely randomly.
Pair Corralation between FuelCell Energy and Blue Star
Assuming the 90 days trading horizon FuelCell Energy is expected to under-perform the Blue Star. But the stock apears to be less risky and, when comparing its historical volatility, FuelCell Energy is 27.49 times less risky than Blue Star. The stock trades about -0.03 of its potential returns per unit of risk. The Blue Star Capital is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Blue Star Capital on October 14, 2024 and sell it today you would lose (150.00) from holding Blue Star Capital or give up 37.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
FuelCell Energy vs. Blue Star Capital
Performance |
| Timeline |
| FuelCell Energy |
| Blue Star Capital |
FuelCell Energy and Blue Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FuelCell Energy and Blue Star
The main advantage of trading using opposite FuelCell Energy and Blue Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelCell Energy position performs unexpectedly, Blue Star 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 Blue Star will offset losses from the drop in Blue Star's long position.| FuelCell Energy vs. UNIQA Insurance Group | FuelCell Energy vs. STMicroelectronics NV | FuelCell Energy vs. Vitec Software Group | FuelCell Energy vs. Alfa Financial Software |
| Blue Star vs. SupplyMe Capital PLC | Blue Star vs. SM Energy Co | Blue Star vs. FuelCell Energy | Blue Star vs. Grand Vision Media |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |