Correlation Between Plug Power and Loop Energy
Can any of the company-specific risk be diversified away by investing in both Plug Power and Loop 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 Plug Power and Loop Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plug Power and Loop Energy, you can compare the effects of market volatilities on Plug Power and Loop 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 Plug Power with a short position of Loop Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and Loop Energy.
Diversification Opportunities for Plug Power and Loop Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Plug and Loop is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and Loop Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loop Energy 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 Loop Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loop Energy has no effect on the direction of Plug Power i.e., Plug Power and Loop Energy go up and down completely randomly.
Pair Corralation between Plug Power and Loop Energy
If you would invest 8.00 in Loop Energy on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Loop Energy 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. Loop Energy
Performance |
| Timeline |
| Plug Power |
| Loop Energy |
Plug Power and Loop Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plug Power and Loop Energy
The main advantage of trading using opposite Plug Power and Loop Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, Loop 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 Loop Energy will offset losses from the drop in Loop Energy'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 |
| Loop Energy vs. FREYR Battery SA | Loop Energy vs. nVent Electric PLC | Loop Energy vs. Hubbell | Loop Energy vs. Advanced Energy Industries |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |