Correlation Between Sunrise New and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both Sunrise New 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 Sunrise New and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrise New Energy and Bloom Energy Corp, you can compare the effects of market volatilities on Sunrise New 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 Sunrise New with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrise New and Bloom Energy.
Diversification Opportunities for Sunrise New and Bloom Energy
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunrise and Bloom is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sunrise New Energy 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 Sunrise New 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 Sunrise New Energy 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 Sunrise New i.e., Sunrise New and Bloom Energy go up and down completely randomly.
Pair Corralation between Sunrise New and Bloom Energy
Given the investment horizon of 90 days Sunrise New Energy is expected to under-perform the Bloom Energy. In addition to that, Sunrise New is 1.03 times more volatile than Bloom Energy Corp. It trades about -0.03 of its total potential returns per unit of risk. Bloom Energy Corp is currently generating about 0.03 per unit of volatility. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunrise New Energy vs. Bloom Energy Corp
Performance |
| Timeline |
| Sunrise New Energy |
| Bloom Energy Corp |
Sunrise New and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrise New and Bloom Energy
The main advantage of trading using opposite Sunrise New and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrise New 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.| Sunrise New vs. FREYR Battery SA | Sunrise New vs. Microvast Holdings | Sunrise New vs. Chardan NexTech Acquisition | Sunrise New 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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