Correlation Between FuelCell Energy and Concurrent Technologies
Can any of the company-specific risk be diversified away by investing in both FuelCell Energy and Concurrent Technologies 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 Concurrent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelCell Energy and Concurrent Technologies Plc, you can compare the effects of market volatilities on FuelCell Energy and Concurrent Technologies 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 Concurrent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelCell Energy and Concurrent Technologies.
Diversification Opportunities for FuelCell Energy and Concurrent Technologies
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FuelCell and Concurrent is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and Concurrent Technologies Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concurrent Technologies 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 Concurrent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concurrent Technologies has no effect on the direction of FuelCell Energy i.e., FuelCell Energy and Concurrent Technologies go up and down completely randomly.
Pair Corralation between FuelCell Energy and Concurrent Technologies
Assuming the 90 days trading horizon FuelCell Energy is expected to generate 60.65 times more return on investment than Concurrent Technologies. However, FuelCell Energy is 60.65 times more volatile than Concurrent Technologies Plc. It trades about 0.14 of its potential returns per unit of risk. Concurrent Technologies Plc is currently generating about 0.11 per unit of risk. If you would invest 2,826 in FuelCell Energy on September 3, 2024 and sell it today you would lose (1,637) from holding FuelCell Energy or give up 57.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
FuelCell Energy vs. Concurrent Technologies Plc
Performance |
| Timeline |
| FuelCell Energy |
| Concurrent Technologies |
FuelCell Energy and Concurrent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FuelCell Energy and Concurrent Technologies
The main advantage of trading using opposite FuelCell Energy and Concurrent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelCell Energy position performs unexpectedly, Concurrent Technologies 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 Concurrent Technologies will offset losses from the drop in Concurrent Technologies' long position.| FuelCell Energy vs. Concurrent Technologies Plc | FuelCell Energy vs. The Mercantile Investment | FuelCell Energy vs. TR Property Investment | FuelCell Energy vs. TechnipFMC PLC |
| Concurrent Technologies vs. Playtech Plc | Concurrent Technologies vs. Celebrus Technologies plc | Concurrent Technologies vs. Bisichi Mining PLC | Concurrent Technologies vs. Raytheon Technologies Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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