Correlation Between Bloom Energy and Tritium Dcfc
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Tritium Dcfc 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 Tritium Dcfc 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 Tritium Dcfc, you can compare the effects of market volatilities on Bloom Energy and Tritium Dcfc 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 Tritium Dcfc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Tritium Dcfc.
Diversification Opportunities for Bloom Energy and Tritium Dcfc
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bloom and Tritium is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Tritium Dcfc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tritium Dcfc 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 Tritium Dcfc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tritium Dcfc has no effect on the direction of Bloom Energy i.e., Bloom Energy and Tritium Dcfc go up and down completely randomly.
Pair Corralation between Bloom Energy and Tritium Dcfc
Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 0.95 times more return on investment than Tritium Dcfc. However, Bloom Energy Corp is 1.05 times less risky than Tritium Dcfc. It trades about 0.38 of its potential returns per unit of risk. Tritium Dcfc is currently generating about -0.19 per unit of risk. If you would invest 1,015 in Bloom Energy Corp on August 27, 2024 and sell it today you would earn a total of 1,580 from holding Bloom Energy Corp or generate 155.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloom Energy Corp vs. Tritium Dcfc
Performance |
| Timeline |
| Bloom Energy Corp |
| Tritium Dcfc |
Bloom Energy and Tritium Dcfc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Tritium Dcfc
The main advantage of trading using opposite Bloom Energy and Tritium Dcfc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Tritium Dcfc 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 Tritium Dcfc will offset losses from the drop in Tritium Dcfc's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy vs. CBAK Energy Technology |
| Tritium Dcfc vs. Microvast Holdings | Tritium Dcfc vs. FREYR Battery SA | Tritium Dcfc vs. Bloom Energy Corp | Tritium Dcfc vs. Enovix Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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