Correlation Between FuelCell Energy and Ondine Biomedical
Can any of the company-specific risk be diversified away by investing in both FuelCell Energy and Ondine Biomedical 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 Ondine Biomedical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelCell Energy and Ondine Biomedical, you can compare the effects of market volatilities on FuelCell Energy and Ondine Biomedical 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 Ondine Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelCell Energy and Ondine Biomedical.
Diversification Opportunities for FuelCell Energy and Ondine Biomedical
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FuelCell and Ondine is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and Ondine Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ondine Biomedical 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 Ondine Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ondine Biomedical has no effect on the direction of FuelCell Energy i.e., FuelCell Energy and Ondine Biomedical go up and down completely randomly.
Pair Corralation between FuelCell Energy and Ondine Biomedical
Assuming the 90 days trading horizon FuelCell Energy is expected to generate 3.35 times more return on investment than Ondine Biomedical. However, FuelCell Energy is 3.35 times more volatile than Ondine Biomedical. It trades about 0.09 of its potential returns per unit of risk. Ondine Biomedical is currently generating about -0.13 per unit of risk. If you would invest 1,028 in FuelCell Energy on August 30, 2024 and sell it today you would earn a total of 116.00 from holding FuelCell Energy or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
FuelCell Energy vs. Ondine Biomedical
Performance |
| Timeline |
| FuelCell Energy |
| Ondine Biomedical |
FuelCell Energy and Ondine Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FuelCell Energy and Ondine Biomedical
The main advantage of trading using opposite FuelCell Energy and Ondine Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelCell Energy position performs unexpectedly, Ondine Biomedical 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 Ondine Biomedical will offset losses from the drop in Ondine Biomedical's long position.| FuelCell Energy vs. Invesco Physical Silver | FuelCell Energy vs. Zoom Video Communications | FuelCell Energy vs. Hochschild Mining plc | FuelCell Energy vs. Blackrock World Mining |
| Ondine Biomedical vs. Toyota Motor Corp | Ondine Biomedical vs. SoftBank Group Corp | Ondine Biomedical vs. OTP Bank Nyrt | Ondine Biomedical vs. Las Vegas Sands |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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