Correlation Between Bloom Energy and Primega Group
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Primega Group 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 Primega Group 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 Primega Group Holdings, you can compare the effects of market volatilities on Bloom Energy and Primega Group 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 Primega Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Primega Group.
Diversification Opportunities for Bloom Energy and Primega Group
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bloom and Primega is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Primega Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primega Group 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 Primega Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primega Group Holdings has no effect on the direction of Bloom Energy i.e., Bloom Energy and Primega Group go up and down completely randomly.
Pair Corralation between Bloom Energy and Primega Group
Allowing for the 90-day total investment horizon Bloom Energy is expected to generate 2.81 times less return on investment than Primega Group. But when comparing it to its historical volatility, Bloom Energy Corp is 1.47 times less risky than Primega Group. It trades about 0.08 of its potential returns per unit of risk. Primega Group Holdings is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 422.00 in Primega Group Holdings on August 28, 2024 and sell it today you would earn a total of 632.00 from holding Primega Group Holdings or generate 149.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Bloom Energy Corp vs. Primega Group Holdings
Performance |
| Timeline |
| Bloom Energy Corp |
| Primega Group Holdings |
Bloom Energy and Primega Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Primega Group
The main advantage of trading using opposite Bloom Energy and Primega Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Primega Group 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 Primega Group will offset losses from the drop in Primega Group's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy vs. CBAK Energy Technology |
| Primega Group vs. Stagwell | Primega Group vs. Amkor Technology | Primega Group vs. Dolphin Entertainment | Primega Group vs. Analog Devices |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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