Correlation Between Bloom Energy and Cadeler AS
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Cadeler AS 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 Cadeler AS 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 Cadeler AS, you can compare the effects of market volatilities on Bloom Energy and Cadeler AS 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 Cadeler AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Cadeler AS.
Diversification Opportunities for Bloom Energy and Cadeler AS
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bloom and Cadeler is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Cadeler AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadeler AS 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 Cadeler AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadeler AS has no effect on the direction of Bloom Energy i.e., Bloom Energy and Cadeler AS go up and down completely randomly.
Pair Corralation between Bloom Energy and Cadeler AS
Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 2.12 times more return on investment than Cadeler AS. However, Bloom Energy is 2.12 times more volatile than Cadeler AS. It trades about 0.11 of its potential returns per unit of risk. Cadeler AS is currently generating about -0.28 per unit of risk. If you would invest 2,040 in Bloom Energy Corp on November 29, 2024 and sell it today you would earn a total of 157.00 from holding Bloom Energy Corp or generate 7.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloom Energy Corp vs. Cadeler AS
Performance |
| Timeline |
| Bloom Energy Corp |
| Cadeler AS |
Bloom Energy and Cadeler AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Cadeler AS
The main advantage of trading using opposite Bloom Energy and Cadeler AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Cadeler AS 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 Cadeler AS will offset losses from the drop in Cadeler AS's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy vs. CBAK Energy Technology |
| Cadeler AS vs. Turning Point Brands | Cadeler AS vs. Ardelyx | Cadeler AS vs. Merit Medical Systems | Cadeler AS vs. Cardinal Health |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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