Correlation Between Bloom Energy and Agrify Corp
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Agrify Corp 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 Bloom Energy and Agrify Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloom Energy Corp and Agrify Corp, you can compare the effects of market volatilities on Bloom Energy and Agrify Corp 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 Agrify Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Agrify Corp.
Diversification Opportunities for Bloom Energy and Agrify Corp
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bloom and Agrify is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Agrify Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrify Corp 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 Corp are associated (or correlated) with Agrify Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrify Corp has no effect on the direction of Bloom Energy i.e., Bloom Energy and Agrify Corp go up and down completely randomly.
Pair Corralation between Bloom Energy and Agrify Corp
Allowing for the 90-day total investment horizon Bloom Energy is expected to generate 1.58 times less return on investment than Agrify Corp. But when comparing it to its historical volatility, Bloom Energy Corp is 1.96 times less risky than Agrify Corp. It trades about 0.07 of its potential returns per unit of risk. Agrify Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,710 in Agrify Corp on November 9, 2024 and sell it today you would earn a total of 415.00 from holding Agrify Corp or generate 24.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloom Energy Corp vs. Agrify Corp
Performance |
| Timeline |
| Bloom Energy Corp |
| Agrify Corp |
Bloom Energy and Agrify Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Agrify Corp
The main advantage of trading using opposite Bloom Energy and Agrify Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Agrify Corp 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 Agrify Corp will offset losses from the drop in Agrify Corp's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy vs. CBAK Energy Technology |
| Agrify Corp vs. MYR Group | Agrify Corp vs. Granite Construction Incorporated | Agrify Corp vs. Construction Partners | Agrify Corp vs. Great Lakes Dredge |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |