Correlation Between Bloom Energy and Legato Merger
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Legato Merger 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 Legato Merger 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 Legato Merger II, you can compare the effects of market volatilities on Bloom Energy and Legato Merger 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 Legato Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Legato Merger.
Diversification Opportunities for Bloom Energy and Legato Merger
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bloom and Legato is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Legato Merger II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legato Merger II 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 Legato Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legato Merger II has no effect on the direction of Bloom Energy i.e., Bloom Energy and Legato Merger go up and down completely randomly.
Pair Corralation between Bloom Energy and Legato Merger
Allowing for the 90-day total investment horizon Bloom Energy is expected to generate 1.25 times less return on investment than Legato Merger. But when comparing it to its historical volatility, Bloom Energy Corp is 1.4 times less risky than Legato Merger. It trades about 0.03 of its potential returns per unit of risk. Legato Merger II is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 826.00 in Legato Merger II on November 28, 2024 and sell it today you would lose (82.00) from holding Legato Merger II or give up 9.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bloom Energy Corp vs. Legato Merger II
Performance |
| Timeline |
| Bloom Energy Corp |
| Legato Merger II |
Bloom Energy and Legato Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Legato Merger
The main advantage of trading using opposite Bloom Energy and Legato Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Legato Merger 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 Legato Merger will offset losses from the drop in Legato Merger's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy vs. CBAK Energy Technology |
| Legato Merger vs. CF Industries Holdings | Legato Merger vs. Cheche Group Class | Legato Merger vs. Senmiao Technology | Legato Merger vs. Eastman Chemical |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |