Correlation Between King Resources and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both King Resources 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 King Resources and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between King Resources and Bloom Energy Corp, you can compare the effects of market volatilities on King Resources 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 King Resources with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Resources and Bloom Energy.
Diversification Opportunities for King Resources and Bloom Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between King and Bloom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding King Resources 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 King Resources 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 King Resources 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 King Resources i.e., King Resources and Bloom Energy go up and down completely randomly.
Pair Corralation between King Resources and Bloom Energy
Given the investment horizon of 90 days King Resources is expected to generate 3.02 times more return on investment than Bloom Energy. However, King Resources is 3.02 times more volatile than Bloom Energy Corp. It trades about 0.27 of its potential returns per unit of risk. Bloom Energy Corp is currently generating about 0.24 per unit of risk. If you would invest 0.01 in King Resources on September 12, 2024 and sell it today you would earn a total of 0.02 from holding King Resources or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
King Resources vs. Bloom Energy Corp
Performance |
| Timeline |
| King Resources |
| Bloom Energy Corp |
King Resources and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Resources and Bloom Energy
The main advantage of trading using opposite King Resources and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Resources 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.| King Resources vs. Generation Alpha | King Resources vs. Dais Analytic Corp | King Resources vs. Polar Power | King Resources vs. Ozop Surgical Corp |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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