Correlation Between Plug Power and SKYX Platforms
Can any of the company-specific risk be diversified away by investing in both Plug Power and SKYX Platforms 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 SKYX Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plug Power and SKYX Platforms Corp, you can compare the effects of market volatilities on Plug Power and SKYX Platforms 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 SKYX Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and SKYX Platforms.
Diversification Opportunities for Plug Power and SKYX Platforms
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Plug and SKYX is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and SKYX Platforms Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKYX Platforms 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 SKYX Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKYX Platforms Corp has no effect on the direction of Plug Power i.e., Plug Power and SKYX Platforms go up and down completely randomly.
Pair Corralation between Plug Power and SKYX Platforms
Given the investment horizon of 90 days Plug Power is expected to under-perform the SKYX Platforms. But the stock apears to be less risky and, when comparing its historical volatility, Plug Power is 1.71 times less risky than SKYX Platforms. The stock trades about -0.16 of its potential returns per unit of risk. The SKYX Platforms Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 160.00 in SKYX Platforms Corp on November 29, 2024 and sell it today you would lose (7.00) from holding SKYX Platforms Corp or give up 4.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plug Power vs. SKYX Platforms Corp
Performance |
| Timeline |
| Plug Power |
| SKYX Platforms Corp |
Plug Power and SKYX Platforms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plug Power and SKYX Platforms
The main advantage of trading using opposite Plug Power and SKYX Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, SKYX Platforms 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 SKYX Platforms will offset losses from the drop in SKYX Platforms' long position.| Plug Power vs. Bloom Energy Corp | Plug Power vs. Microvast Holdings | Plug Power vs. Solid Power | Plug Power vs. CBAK Energy Technology |
| SKYX Platforms vs. Espey Mfg Electronics | SKYX Platforms vs. NeoVolta Warrant | SKYX Platforms vs. Kimball Electronics | SKYX Platforms vs. Hayward Holdings |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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