Correlation Between Plug Power and Idglobal Corp
Can any of the company-specific risk be diversified away by investing in both Plug Power and Idglobal Corp 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 Plug Power and Idglobal Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plug Power and Idglobal Corp, you can compare the effects of market volatilities on Plug Power and Idglobal Corp 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 Plug Power with a short position of Idglobal Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and Idglobal Corp.
Diversification Opportunities for Plug Power and Idglobal Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Plug and Idglobal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and Idglobal Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idglobal Corp and Plug Power 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 Plug Power are associated (or correlated) with Idglobal Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idglobal Corp has no effect on the direction of Plug Power i.e., Plug Power and Idglobal Corp go up and down completely randomly.
Pair Corralation between Plug Power and Idglobal Corp
Given the investment horizon of 90 days Plug Power is expected to under-perform the Idglobal Corp. But the stock apears to be less risky and, when comparing its historical volatility, Plug Power is 11.14 times less risky than Idglobal Corp. The stock trades about -0.01 of its potential returns per unit of risk. The Idglobal Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Idglobal Corp on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Idglobal Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plug Power vs. Idglobal Corp
Performance |
| Timeline |
| Plug Power |
| Idglobal Corp |
Plug Power and Idglobal Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plug Power and Idglobal Corp
The main advantage of trading using opposite Plug Power and Idglobal Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, Idglobal Corp 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 Idglobal Corp will offset losses from the drop in Idglobal Corp's long position.| Plug Power vs. Bloom Energy Corp | Plug Power vs. Microvast Holdings | Plug Power vs. Solid Power | Plug Power vs. CBAK Energy Technology |
| Idglobal Corp vs. Plug Power | Idglobal Corp vs. Eos Energy Enterprises | Idglobal Corp vs. Sunrise New Energy | Idglobal Corp vs. Ozop Surgical Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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