Correlation Between Alfen NV and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both Alfen NV and Bloom Energy 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 Alfen NV and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alfen NV and Bloom Energy, you can compare the effects of market volatilities on Alfen NV and Bloom Energy 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 Alfen NV with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfen NV and Bloom Energy.
Diversification Opportunities for Alfen NV and Bloom Energy
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alfen and Bloom is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Alfen NV and Bloom Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Energy and Alfen NV 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 Alfen NV are associated (or correlated) with Bloom Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloom Energy has no effect on the direction of Alfen NV i.e., Alfen NV and Bloom Energy go up and down completely randomly.
Pair Corralation between Alfen NV and Bloom Energy
Assuming the 90 days horizon Alfen NV is expected to generate 0.98 times more return on investment than Bloom Energy. However, Alfen NV is 1.02 times less risky than Bloom Energy. It trades about 0.16 of its potential returns per unit of risk. Bloom Energy is currently generating about 0.0 per unit of risk. If you would invest 1,262 in Alfen NV on October 12, 2024 and sell it today you would earn a total of 108.00 from holding Alfen NV or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alfen NV vs. Bloom Energy
Performance |
| Timeline |
| Alfen NV |
| Bloom Energy |
Alfen NV and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfen NV and Bloom Energy
The main advantage of trading using opposite Alfen NV and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfen NV position performs unexpectedly, Bloom Energy 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 Bloom Energy will offset losses from the drop in Bloom Energy's long position.| Alfen NV vs. Pure Storage | Alfen NV vs. NTT DATA | Alfen NV vs. G III Apparel Group | Alfen NV vs. Hyrican Informationssysteme Aktiengesellschaft |
| Bloom Energy vs. Delta Electronics Public | Bloom Energy vs. Superior Plus Corp | Bloom Energy vs. NMI Holdings | Bloom Energy vs. SIVERS SEMICONDUCTORS AB |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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