Correlation Between NeoVolta Common and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both NeoVolta Common 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 NeoVolta Common and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NeoVolta Common Stock and Bloom Energy Corp, you can compare the effects of market volatilities on NeoVolta Common 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 NeoVolta Common with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeoVolta Common and Bloom Energy.
Diversification Opportunities for NeoVolta Common and Bloom Energy
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NeoVolta and Bloom is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding NeoVolta Common Stock 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 NeoVolta Common 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 NeoVolta Common Stock 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 NeoVolta Common i.e., NeoVolta Common and Bloom Energy go up and down completely randomly.
Pair Corralation between NeoVolta Common and Bloom Energy
Given the investment horizon of 90 days NeoVolta Common is expected to generate 1.99 times less return on investment than Bloom Energy. But when comparing it to its historical volatility, NeoVolta Common Stock is 2.42 times less risky than Bloom Energy. It trades about 0.46 of its potential returns per unit of risk. Bloom Energy Corp is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,014 in Bloom Energy Corp on August 30, 2024 and sell it today you would earn a total of 1,707 from holding Bloom Energy Corp or generate 168.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
NeoVolta Common Stock vs. Bloom Energy Corp
Performance |
| Timeline |
| NeoVolta Common Stock |
| Bloom Energy Corp |
NeoVolta Common and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeoVolta Common and Bloom Energy
The main advantage of trading using opposite NeoVolta Common and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeoVolta Common 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.| NeoVolta Common vs. Solid Power | NeoVolta Common vs. Enovix Corp | NeoVolta Common vs. Microvast Holdings | NeoVolta Common vs. LiCycle Holdings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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