Correlation Between Fluence Energy and Heliogen
Can any of the company-specific risk be diversified away by investing in both Fluence Energy and Heliogen 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 Fluence Energy and Heliogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluence Energy and Heliogen, you can compare the effects of market volatilities on Fluence Energy and Heliogen 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 Fluence Energy with a short position of Heliogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluence Energy and Heliogen.
Diversification Opportunities for Fluence Energy and Heliogen
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fluence and Heliogen is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fluence Energy and Heliogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heliogen and Fluence 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 Fluence Energy are associated (or correlated) with Heliogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heliogen has no effect on the direction of Fluence Energy i.e., Fluence Energy and Heliogen go up and down completely randomly.
Pair Corralation between Fluence Energy and Heliogen
If you would invest 1,980 in Fluence Energy on August 24, 2024 and sell it today you would earn a total of 138.00 from holding Fluence Energy or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Fluence Energy vs. Heliogen
Performance |
| Timeline |
| Fluence Energy |
| Heliogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fluence Energy and Heliogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluence Energy and Heliogen
The main advantage of trading using opposite Fluence Energy and Heliogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluence Energy position performs unexpectedly, Heliogen 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 Heliogen will offset losses from the drop in Heliogen's long position.| Fluence Energy vs. Altus Power | Fluence Energy vs. Ormat Technologies | Fluence Energy vs. Enlight Renewable Energy | Fluence Energy vs. Advent Technologies 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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