Correlation Between Bloom Energy and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and FTAI Infrastructure 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 FTAI Infrastructure 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 FTAI Infrastructure, you can compare the effects of market volatilities on Bloom Energy and FTAI Infrastructure 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 FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and FTAI Infrastructure.
Diversification Opportunities for Bloom Energy and FTAI Infrastructure
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bloom and FTAI is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure 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 FTAI Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Infrastructure has no effect on the direction of Bloom Energy i.e., Bloom Energy and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between Bloom Energy and FTAI Infrastructure
Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 4.16 times more return on investment than FTAI Infrastructure. However, Bloom Energy is 4.16 times more volatile than FTAI Infrastructure. It trades about 0.39 of its potential returns per unit of risk. FTAI Infrastructure is currently generating about 0.01 per unit of risk. If you would invest 1,010 in Bloom Energy Corp on August 31, 2024 and sell it today you would earn a total of 1,711 from holding Bloom Energy Corp or generate 169.41% 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. FTAI Infrastructure
Performance |
| Timeline |
| Bloom Energy Corp |
| FTAI Infrastructure |
Bloom Energy and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and FTAI Infrastructure
The main advantage of trading using opposite Bloom Energy and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, FTAI Infrastructure 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 FTAI Infrastructure will offset losses from the drop in FTAI Infrastructure's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. FREYR Battery SA | Bloom Energy vs. FuelCell Energy | Bloom Energy vs. Enovix Corp |
| FTAI Infrastructure vs. Steel Partners Holdings | FTAI Infrastructure vs. Brookfield Business Partners | FTAI Infrastructure vs. Griffon | FTAI Infrastructure vs. Tejon Ranch Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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