Correlation Between Bloom Energy and Plug Power
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By analyzing existing cross correlation between Bloom Energy and Plug Power, you can compare the effects of market volatilities on Bloom Energy and Plug Power 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 Bloom Energy with a short position of Plug Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Plug Power.
Diversification Opportunities for Bloom Energy and Plug Power
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bloom and Plug is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy and Plug Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plug Power and Bloom 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 Bloom Energy are associated (or correlated) with Plug Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plug Power has no effect on the direction of Bloom Energy i.e., Bloom Energy and Plug Power go up and down completely randomly.
Pair Corralation between Bloom Energy and Plug Power
Assuming the 90 days horizon Bloom Energy is expected to under-perform the Plug Power. But the stock apears to be less risky and, when comparing its historical volatility, Bloom Energy is 1.5 times less risky than Plug Power. The stock trades about -0.09 of its potential returns per unit of risk. The Plug Power is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 187.00 in Plug Power on September 24, 2024 and sell it today you would earn a total of 57.00 from holding Plug Power or generate 30.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloom Energy vs. Plug Power
Performance |
| Timeline |
| Bloom Energy |
| Plug Power |
Bloom Energy and Plug Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Plug Power
The main advantage of trading using opposite Bloom Energy and Plug Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Plug Power 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 Plug Power will offset losses from the drop in Plug Power's long position.| Bloom Energy vs. Delta Electronics Public | Bloom Energy vs. YASKAWA ELEC UNSP | Bloom Energy vs. Plug Power | Bloom Energy vs. VERTIV HOLCL A |
| Plug Power vs. Delta Electronics Public | Plug Power vs. YASKAWA ELEC UNSP | Plug Power vs. VERTIV HOLCL A | Plug Power vs. OSRAM LICHT N |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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