Correlation Between Plug Power and Razor Energy

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Can any of the company-specific risk be diversified away by investing in both Plug Power and Razor 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 Razor 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 Razor Energy Corp, you can compare the effects of market volatilities on Plug Power and Razor 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 Razor Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and Razor Energy.

Diversification Opportunities for Plug Power and Razor Energy

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Plug and Razor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and Razor Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Razor Energy 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 Razor Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Razor Energy Corp has no effect on the direction of Plug Power i.e., Plug Power and Razor Energy go up and down completely randomly.

Pair Corralation between Plug Power and Razor Energy

If you would invest (100.00) in Razor Energy Corp on October 31, 2025 and sell it today you would earn a total of  100.00  from holding Razor Energy Corp or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Plug Power  vs.  Razor Energy Corp

 Performance 
       Timeline  
Plug Power 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Plug Power has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Plug Power is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
Razor Energy Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Razor Energy Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Razor Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Plug Power and Razor Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Plug Power and Razor Energy

The main advantage of trading using opposite Plug Power and Razor Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, Razor 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 Razor Energy will offset losses from the drop in Razor Energy's long position.
The idea behind Plug Power and Razor Energy Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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