Correlation Between Bloom Energy and Paycor HCM
Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Paycor HCM 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 Paycor HCM 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 Paycor HCM, you can compare the effects of market volatilities on Bloom Energy and Paycor HCM 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 Paycor HCM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Paycor HCM.
Diversification Opportunities for Bloom Energy and Paycor HCM
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bloom and Paycor is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Paycor HCM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paycor HCM 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 Paycor HCM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paycor HCM has no effect on the direction of Bloom Energy i.e., Bloom Energy and Paycor HCM go up and down completely randomly.
Pair Corralation between Bloom Energy and Paycor HCM
Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 2.08 times more return on investment than Paycor HCM. However, Bloom Energy is 2.08 times more volatile than Paycor HCM. It trades about 0.03 of its potential returns per unit of risk. Paycor HCM is currently generating about -0.02 per unit of risk. If you would invest 2,013 in Bloom Energy Corp on August 27, 2024 and sell it today you would earn a total of 563.00 from holding Bloom Energy Corp or generate 27.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloom Energy Corp vs. Paycor HCM
Performance |
| Timeline |
| Bloom Energy Corp |
| Paycor HCM |
Bloom Energy and Paycor HCM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Energy and Paycor HCM
The main advantage of trading using opposite Bloom Energy and Paycor HCM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Paycor HCM 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 Paycor HCM will offset losses from the drop in Paycor HCM's long position.| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy vs. CBAK Energy Technology |
| Paycor HCM vs. Manhattan Associates | Paycor HCM vs. Paycom Soft | Paycor HCM vs. Clearwater Analytics Holdings | Paycor HCM vs. Procore Technologies |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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