Correlation Between FuelCell Energy and Intuitive Investments
Can any of the company-specific risk be diversified away by investing in both FuelCell Energy and Intuitive Investments 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 Intuitive Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelCell Energy and Intuitive Investments Group, you can compare the effects of market volatilities on FuelCell Energy and Intuitive Investments 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 Intuitive Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelCell Energy and Intuitive Investments.
Diversification Opportunities for FuelCell Energy and Intuitive Investments
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FuelCell and Intuitive is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and Intuitive Investments Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Investments 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 Intuitive Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Investments has no effect on the direction of FuelCell Energy i.e., FuelCell Energy and Intuitive Investments go up and down completely randomly.
Pair Corralation between FuelCell Energy and Intuitive Investments
Assuming the 90 days trading horizon FuelCell Energy is expected to generate 21.19 times more return on investment than Intuitive Investments. However, FuelCell Energy is 21.19 times more volatile than Intuitive Investments Group. It trades about 0.11 of its potential returns per unit of risk. Intuitive Investments Group is currently generating about 0.05 per unit of risk. If you would invest 9,546 in FuelCell Energy on August 29, 2024 and sell it today you would lose (8,555) from holding FuelCell Energy or give up 89.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
FuelCell Energy vs. Intuitive Investments Group
Performance |
| Timeline |
| FuelCell Energy |
| Intuitive Investments |
FuelCell Energy and Intuitive Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FuelCell Energy and Intuitive Investments
The main advantage of trading using opposite FuelCell Energy and Intuitive Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelCell Energy position performs unexpectedly, Intuitive Investments 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 Intuitive Investments will offset losses from the drop in Intuitive Investments' long position.| FuelCell Energy vs. InterContinental Hotels Group | FuelCell Energy vs. Alfa Financial Software | FuelCell Energy vs. PPHE Hotel Group | FuelCell Energy vs. Iron Mountain |
| Intuitive Investments vs. Toyota Motor Corp | Intuitive Investments vs. CATCo Reinsurance Opportunities | Intuitive Investments vs. Lendinvest PLC | Intuitive Investments vs. Neometals |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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