Correlation Between Bloom Energy and Mayville Engineering
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Mayville Engineering 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 Mayville Engineering 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 Mayville Engineering Co, you can compare the effects of market volatilities on Bloom Energy and Mayville Engineering 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 Mayville Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Mayville Engineering.
Diversification Opportunities for Bloom Energy and Mayville Engineering
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bloom and Mayville is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Mayville Engineering Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayville Engineering 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 Mayville Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayville Engineering has no effect on the direction of Bloom Energy i.e., Bloom Energy and Mayville Engineering go up and down completely randomly.
Pair Corralation between Bloom Energy and Mayville Engineering
Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 1.46 times more return on investment than Mayville Engineering. However, Bloom Energy is 1.46 times more volatile than Mayville Engineering Co. It trades about 0.03 of its potential returns per unit of risk. Mayville Engineering Co is currently generating about 0.03 per unit of risk. If you would invest 2,047 in Bloom Energy Corp on August 30, 2024 and sell it today you would earn a total of 674.00 from holding Bloom Energy Corp or generate 32.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Bloom Energy Corp vs. Mayville Engineering Co
Performance |
| Timeline |
| Bloom Energy Corp |
| Mayville Engineering |
Bloom Energy and Mayville Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Mayville Engineering
The main advantage of trading using opposite Bloom Energy and Mayville Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Mayville Engineering 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 Mayville Engineering will offset losses from the drop in Mayville Engineering's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy vs. CBAK Energy Technology |
| Mayville Engineering vs. Haynes International | Mayville Engineering vs. Insteel Industries | Mayville Engineering vs. Gulf Island Fabrication | Mayville Engineering vs. ESAB Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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