Correlation Between Bloom Energy and GrafTech International
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and GrafTech International 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 GrafTech International 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 GrafTech International, you can compare the effects of market volatilities on Bloom Energy and GrafTech International 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 GrafTech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and GrafTech International.
Diversification Opportunities for Bloom Energy and GrafTech International
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bloom and GrafTech is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and GrafTech International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrafTech International 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 GrafTech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrafTech International has no effect on the direction of Bloom Energy i.e., Bloom Energy and GrafTech International go up and down completely randomly.
Pair Corralation between Bloom Energy and GrafTech International
Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 1.47 times more return on investment than GrafTech International. However, Bloom Energy is 1.47 times more volatile than GrafTech International. It trades about 0.08 of its potential returns per unit of risk. GrafTech International is currently generating about -0.41 per unit of risk. If you would invest 2,392 in Bloom Energy Corp on November 18, 2024 and sell it today you would earn a total of 149.00 from holding Bloom Energy Corp or generate 6.23% 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. GrafTech International
Performance |
| Timeline |
| Bloom Energy Corp |
| GrafTech International |
Bloom Energy and GrafTech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and GrafTech International
The main advantage of trading using opposite Bloom Energy and GrafTech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, GrafTech International 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 GrafTech International will offset losses from the drop in GrafTech International's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy vs. CBAK Energy Technology |
| GrafTech International vs. Kimball Electronics | GrafTech International vs. Hayward Holdings | GrafTech International vs. Enersys | GrafTech International vs. Espey Mfg Electronics |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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