Correlation Between FuelCell Energy and SKYX Platforms
Can any of the company-specific risk be diversified away by investing in both FuelCell Energy and SKYX Platforms 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 FuelCell Energy and SKYX Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelCell Energy and SKYX Platforms Corp, you can compare the effects of market volatilities on FuelCell Energy and SKYX Platforms 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 FuelCell Energy with a short position of SKYX Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelCell Energy and SKYX Platforms.
Diversification Opportunities for FuelCell Energy and SKYX Platforms
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FuelCell and SKYX is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and SKYX Platforms Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKYX Platforms Corp and FuelCell 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 FuelCell Energy are associated (or correlated) with SKYX Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKYX Platforms Corp has no effect on the direction of FuelCell Energy i.e., FuelCell Energy and SKYX Platforms go up and down completely randomly.
Pair Corralation between FuelCell Energy and SKYX Platforms
Given the investment horizon of 90 days FuelCell Energy is expected to generate 2.12 times more return on investment than SKYX Platforms. However, FuelCell Energy is 2.12 times more volatile than SKYX Platforms Corp. It trades about -0.04 of its potential returns per unit of risk. SKYX Platforms Corp is currently generating about -0.14 per unit of risk. If you would invest 985.00 in FuelCell Energy on August 24, 2024 and sell it today you would lose (193.00) from holding FuelCell Energy or give up 19.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FuelCell Energy vs. SKYX Platforms Corp
Performance |
| Timeline |
| FuelCell Energy |
| SKYX Platforms Corp |
FuelCell Energy and SKYX Platforms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FuelCell Energy and SKYX Platforms
The main advantage of trading using opposite FuelCell Energy and SKYX Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelCell Energy position performs unexpectedly, SKYX Platforms 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 SKYX Platforms will offset losses from the drop in SKYX Platforms' long position.| FuelCell Energy vs. Bloom Energy Corp | FuelCell Energy vs. Microvast Holdings | FuelCell Energy vs. Solid Power | FuelCell Energy vs. Enovix Corp |
| SKYX Platforms vs. Espey Mfg Electronics | SKYX Platforms vs. NeoVolta Warrant | SKYX Platforms vs. Kimball Electronics | SKYX Platforms vs. Hayward Holdings |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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