Correlation Between Bloom Energy and Kirby
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Kirby 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 Kirby 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 Kirby, you can compare the effects of market volatilities on Bloom Energy and Kirby 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 Kirby. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Kirby.
Diversification Opportunities for Bloom Energy and Kirby
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bloom and Kirby is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Kirby in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kirby 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 Kirby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kirby has no effect on the direction of Bloom Energy i.e., Bloom Energy and Kirby go up and down completely randomly.
Pair Corralation between Bloom Energy and Kirby
Allowing for the 90-day total investment horizon Bloom Energy is expected to generate 1.03 times less return on investment than Kirby. In addition to that, Bloom Energy is 4.19 times more volatile than Kirby. It trades about 0.05 of its total potential returns per unit of risk. Kirby is currently generating about 0.19 per unit of volatility. If you would invest 10,497 in Kirby on November 2, 2024 and sell it today you would earn a total of 715.00 from holding Kirby or generate 6.81% 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. Kirby
Performance |
| Timeline |
| Bloom Energy Corp |
| Kirby |
Bloom Energy and Kirby Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Kirby
The main advantage of trading using opposite Bloom Energy and Kirby positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Kirby 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 Kirby will offset losses from the drop in Kirby's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy vs. CBAK Energy Technology |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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