Correlation Between Eos Energy and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both Eos Energy 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 Eos Energy and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eos Energy Enterprises and Bloom Energy Corp, you can compare the effects of market volatilities on Eos Energy 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 Eos Energy with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Bloom Energy.
Diversification Opportunities for Eos Energy and Bloom Energy
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eos and Bloom is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises 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 Eos 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 Eos Energy Enterprises 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 Eos Energy i.e., Eos Energy and Bloom Energy go up and down completely randomly.
Pair Corralation between Eos Energy and Bloom Energy
Given the investment horizon of 90 days Eos Energy Enterprises is expected to under-perform the Bloom Energy. But the stock apears to be less risky and, when comparing its historical volatility, Eos Energy Enterprises is 1.97 times less risky than Bloom Energy. The stock trades about -0.13 of its potential returns per unit of risk. The Bloom Energy Corp is currently generating about 0.38 of returns per unit of risk over similar time horizon. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eos Energy Enterprises vs. Bloom Energy Corp
Performance |
| Timeline |
| Eos Energy Enterprises |
| Bloom Energy Corp |
Eos Energy and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and Bloom Energy
The main advantage of trading using opposite Eos Energy and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy 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.| Eos Energy vs. FREYR Battery SA | Eos Energy vs. Microvast Holdings | Eos Energy vs. Chardan NexTech Acquisition | Eos Energy vs. Solid Power |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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