Correlation Between Elong Power and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both Elong Power and Bloom Energy 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 Elong Power and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elong Power Holding and Bloom Energy Corp, you can compare the effects of market volatilities on Elong Power and Bloom Energy 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 Elong Power with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elong Power and Bloom Energy.
Diversification Opportunities for Elong Power and Bloom Energy
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elong and Bloom is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Elong Power Holding and Bloom Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Energy Corp and Elong Power 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 Elong Power Holding are associated (or correlated) with Bloom Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloom Energy Corp has no effect on the direction of Elong Power i.e., Elong Power and Bloom Energy go up and down completely randomly.
Pair Corralation between Elong Power and Bloom Energy
Given the investment horizon of 90 days Elong Power Holding is expected to under-perform the Bloom Energy. But the stock apears to be less risky and, when comparing its historical volatility, Elong Power Holding is 1.04 times less risky than Bloom Energy. The stock trades about -0.07 of its potential returns per unit of risk. The Bloom Energy Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,012 in Bloom Energy Corp on November 29, 2024 and sell it today you would earn a total of 185.00 from holding Bloom Energy Corp or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.9% |
| Values | Daily Returns |
Elong Power Holding vs. Bloom Energy Corp
Performance |
| Timeline |
| Elong Power Holding |
| Bloom Energy Corp |
Elong Power and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elong Power and Bloom Energy
The main advantage of trading using opposite Elong Power and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elong Power position performs unexpectedly, Bloom Energy 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 Bloom Energy will offset losses from the drop in Bloom Energy's long position.| Elong Power vs. Bloom Energy Corp | Elong Power vs. Electrovaya Common Shares | Elong Power vs. Enovix Corp | Elong Power vs. Eos Energy Enterprises |
| Bloom Energy vs. Plug Power | Bloom Energy vs. Microvast Holdings | Bloom Energy vs. Solid Power | Bloom Energy 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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