Correlation Between Bloom Energy and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Hyster Yale 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 Hyster Yale 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 Hyster Yale Materials Handling, you can compare the effects of market volatilities on Bloom Energy and Hyster Yale 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 Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Hyster Yale.
Diversification Opportunities for Bloom Energy and Hyster Yale
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bloom and Hyster is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials 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 Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of Bloom Energy i.e., Bloom Energy and Hyster Yale go up and down completely randomly.
Pair Corralation between Bloom Energy and Hyster Yale
Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 3.54 times more return on investment than Hyster Yale. However, Bloom Energy is 3.54 times more volatile than Hyster Yale Materials Handling. It trades about 0.39 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about -0.17 per unit of risk. If you would invest 904.00 in Bloom Energy Corp on August 24, 2024 and sell it today you would earn a total of 1,490 from holding Bloom Energy Corp or generate 164.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloom Energy Corp vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Bloom Energy Corp |
| Hyster Yale Materials |
Bloom Energy and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Hyster Yale
The main advantage of trading using opposite Bloom Energy and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy vs. CBAK Energy Technology |
| Hyster Yale vs. Astec Industries | Hyster Yale vs. Manitex International | Hyster Yale vs. Shyft Group | Hyster Yale vs. Rev Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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