Correlation Between Plug Power and Tantalus Systems
Can any of the company-specific risk be diversified away by investing in both Plug Power and Tantalus Systems 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 Tantalus Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plug Power and Tantalus Systems Holding, you can compare the effects of market volatilities on Plug Power and Tantalus Systems 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 Tantalus Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and Tantalus Systems.
Diversification Opportunities for Plug Power and Tantalus Systems
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Plug and Tantalus is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and Tantalus Systems Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tantalus Systems Holding 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 Tantalus Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tantalus Systems Holding has no effect on the direction of Plug Power i.e., Plug Power and Tantalus Systems go up and down completely randomly.
Pair Corralation between Plug Power and Tantalus Systems
Given the investment horizon of 90 days Plug Power is expected to under-perform the Tantalus Systems. In addition to that, Plug Power is 3.75 times more volatile than Tantalus Systems Holding. It trades about -0.01 of its total potential returns per unit of risk. Tantalus Systems Holding is currently generating about 0.21 per unit of volatility. If you would invest 109.00 in Tantalus Systems Holding on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Tantalus Systems Holding or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plug Power vs. Tantalus Systems Holding
Performance |
| Timeline |
| Plug Power |
| Tantalus Systems Holding |
Plug Power and Tantalus Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plug Power and Tantalus Systems
The main advantage of trading using opposite Plug Power and Tantalus Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, Tantalus Systems 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 Tantalus Systems will offset losses from the drop in Tantalus Systems' long position.| Plug Power vs. Bloom Energy Corp | Plug Power vs. Microvast Holdings | Plug Power vs. Solid Power | Plug Power vs. CBAK Energy Technology |
| Tantalus Systems vs. Signify NV | Tantalus Systems vs. AFC Energy plc | Tantalus Systems vs. Loop Energy | Tantalus Systems vs. Hydrogen Engine Center |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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