Correlation Between Bloom Energy and Enovix Corp
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Enovix 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 Enovix 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 Enovix Corp, you can compare the effects of market volatilities on Bloom Energy and Enovix 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 Enovix Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Enovix Corp.
Diversification Opportunities for Bloom Energy and Enovix Corp
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bloom and Enovix is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Enovix Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enovix 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 Enovix Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enovix Corp has no effect on the direction of Bloom Energy i.e., Bloom Energy and Enovix Corp go up and down completely randomly.
Pair Corralation between Bloom Energy and Enovix Corp
Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 0.82 times more return on investment than Enovix Corp. However, Bloom Energy Corp is 1.21 times less risky than Enovix Corp. It trades about 0.03 of its potential returns per unit of risk. Enovix Corp is currently generating about 0.02 per unit of risk. If you would invest 2,198 in Bloom Energy Corp on August 23, 2024 and sell it today you would earn a total of 196.00 from holding Bloom Energy Corp or generate 8.92% 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. Enovix Corp
Performance |
| Timeline |
| Bloom Energy Corp |
| Enovix Corp |
Bloom Energy and Enovix Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Enovix Corp
The main advantage of trading using opposite Bloom Energy and Enovix Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Enovix 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 Enovix Corp will offset losses from the drop in Enovix 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 |
| Enovix Corp vs. ESS Tech | Enovix Corp vs. FREYR Battery SA | Enovix Corp vs. Microvast Holdings | Enovix Corp 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |