Correlation Between Bloom Energy and Elong Power
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Elong Power 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 Elong Power 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 Elong Power Holding, you can compare the effects of market volatilities on Bloom Energy and Elong Power 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 Elong Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Elong Power.
Diversification Opportunities for Bloom Energy and Elong Power
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bloom and Elong is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Elong Power Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elong Power Holding 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 Elong Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elong Power Holding has no effect on the direction of Bloom Energy i.e., Bloom Energy and Elong Power go up and down completely randomly.
Pair Corralation between Bloom Energy and Elong Power
Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 1.15 times more return on investment than Elong Power. However, Bloom Energy is 1.15 times more volatile than Elong Power Holding. It trades about 0.05 of its potential returns per unit of risk. Elong Power Holding is currently generating about -0.08 per unit of risk. If you would invest 1,661 in Bloom Energy Corp on August 31, 2024 and sell it today you would earn a total of 1,060 from holding Bloom Energy Corp or generate 63.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloom Energy Corp vs. Elong Power Holding
Performance |
| Timeline |
| Bloom Energy Corp |
| Elong Power Holding |
Bloom Energy and Elong Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Elong Power
The main advantage of trading using opposite Bloom Energy and Elong Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Elong Power 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 Elong Power will offset losses from the drop in Elong Power's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. FREYR Battery SA | Bloom Energy vs. FuelCell Energy | Bloom Energy vs. Enovix Corp |
| Elong Power vs. Bloom Energy Corp | Elong Power vs. Electrovaya Common Shares | Elong Power vs. Enovix Corp | Elong Power vs. Eos Energy Enterprises |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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