Correlation Between Nxu and Plug Power
Can any of the company-specific risk be diversified away by investing in both Nxu and Plug Power 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 Nxu and Plug Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nxu Inc and Plug Power, you can compare the effects of market volatilities on Nxu and Plug Power 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 Nxu with a short position of Plug Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nxu and Plug Power.
Diversification Opportunities for Nxu and Plug Power
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nxu and Plug is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Nxu Inc and Plug Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plug Power and Nxu 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 Nxu Inc are associated (or correlated) with Plug Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plug Power has no effect on the direction of Nxu i.e., Nxu and Plug Power go up and down completely randomly.
Pair Corralation between Nxu and Plug Power
Considering the 90-day investment horizon Nxu Inc is expected to under-perform the Plug Power. In addition to that, Nxu is 2.78 times more volatile than Plug Power. It trades about -0.06 of its total potential returns per unit of risk. Plug Power is currently generating about -0.03 per unit of volatility. If you would invest 1,411 in Plug Power on September 3, 2024 and sell it today you would lose (1,187) from holding Plug Power or give up 84.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nxu Inc vs. Plug Power
Performance |
| Timeline |
| Nxu Inc |
| Plug Power |
Nxu and Plug Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nxu and Plug Power
The main advantage of trading using opposite Nxu and Plug Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nxu position performs unexpectedly, Plug Power 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 Plug Power will offset losses from the drop in Plug Power's long position.| Nxu vs. Chardan NexTech Acquisition | Nxu vs. Polar Power | Nxu vs. Eos Energy Enterprises | Nxu vs. Sunrise New Energy |
| Plug Power vs. Bloom Energy Corp | Plug Power vs. Microvast Holdings | Plug Power vs. Solid Power | Plug Power 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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