Correlation Between DAX Index and Bloom Energy
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By analyzing existing cross correlation between DAX Index and Bloom Energy, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Bloom Energy.
Diversification Opportunities for DAX Index and Bloom Energy
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DAX and Bloom is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Bloom Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Energy and DAX Index 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 DAX Index 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 has no effect on the direction of DAX Index i.e., DAX Index and Bloom Energy go up and down completely randomly.
Pair Corralation between DAX Index and Bloom Energy
Assuming the 90 days trading horizon DAX Index is expected to generate 28.61 times less return on investment than Bloom Energy. But when comparing it to its historical volatility, DAX Index is 13.36 times less risky than Bloom Energy. It trades about 0.07 of its potential returns per unit of risk. Bloom Energy is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,069 in Bloom Energy on August 25, 2024 and sell it today you would earn a total of 1,431 from holding Bloom Energy or generate 133.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
DAX Index vs. Bloom Energy
Performance |
| Timeline |
DAX Index and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Bloom Energy
Pair trading matchups for Bloom Energy
Pair Trading with DAX Index and Bloom Energy
The main advantage of trading using opposite DAX Index and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. Granite Construction | DAX Index vs. AGRICULTBK HADR25 YC | DAX Index vs. ADRIATIC METALS LS 013355 | DAX Index vs. GREENX METALS LTD |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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