Correlation Between Bloom Energy and Multi Ways
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Multi Ways 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 Multi Ways 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 Multi Ways Holdings, you can compare the effects of market volatilities on Bloom Energy and Multi Ways 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 Multi Ways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Multi Ways.
Diversification Opportunities for Bloom Energy and Multi Ways
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bloom and Multi is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Multi Ways Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Ways Holdings 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 Multi Ways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Ways Holdings has no effect on the direction of Bloom Energy i.e., Bloom Energy and Multi Ways go up and down completely randomly.
Pair Corralation between Bloom Energy and Multi Ways
Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 1.32 times more return on investment than Multi Ways. However, Bloom Energy is 1.32 times more volatile than Multi Ways Holdings. It trades about 0.11 of its potential returns per unit of risk. Multi Ways Holdings is currently generating about 0.01 per unit of risk. If you would invest 2,281 in Bloom Energy Corp on September 18, 2024 and sell it today you would earn a total of 196.00 from holding Bloom Energy Corp or generate 8.59% 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. Multi Ways Holdings
Performance |
| Timeline |
| Bloom Energy Corp |
| Multi Ways Holdings |
Bloom Energy and Multi Ways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Multi Ways
The main advantage of trading using opposite Bloom Energy and Multi Ways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Multi Ways 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 Multi Ways will offset losses from the drop in Multi Ways' long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy vs. CBAK Energy Technology |
| Multi Ways vs. FlexShopper | Multi Ways vs. Hertz Global Holdings | Multi Ways vs. HyreCar | Multi Ways vs. Avis Budget 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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