Correlation Between Bloom Energy and Polar Power
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Polar Power 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 Polar Power 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 Polar Power, you can compare the effects of market volatilities on Bloom Energy and Polar Power 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 Polar Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Polar Power.
Diversification Opportunities for Bloom Energy and Polar Power
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bloom and Polar is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Polar Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Power 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 Polar Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Power has no effect on the direction of Bloom Energy i.e., Bloom Energy and Polar Power go up and down completely randomly.
Pair Corralation between Bloom Energy and Polar Power
Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 1.72 times more return on investment than Polar Power. However, Bloom Energy is 1.72 times more volatile than Polar Power. It trades about 0.38 of its potential returns per unit of risk. Polar Power is currently generating about 0.1 per unit of risk. If you would invest 1,015 in Bloom Energy Corp on August 27, 2024 and sell it today you would earn a total of 1,561 from holding Bloom Energy Corp or generate 153.79% 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. Polar Power
Performance |
| Timeline |
| Bloom Energy Corp |
| Polar Power |
Bloom Energy and Polar Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Polar Power
The main advantage of trading using opposite Bloom Energy and Polar Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Polar Power 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 Polar Power will offset losses from the drop in Polar Power's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy vs. CBAK Energy Technology |
| Polar Power vs. Plug Power | Polar Power vs. Microvast Holdings | Polar Power vs. Solid Power | Polar Power 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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