Correlation Between Plug Power and Bloom Energy
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By analyzing existing cross correlation between Plug Power and Bloom Energy, you can compare the effects of market volatilities on Plug Power and Bloom 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 Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and Bloom Energy.
Diversification Opportunities for Plug Power and Bloom Energy
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Plug and Bloom is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and Bloom Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom 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 Bloom Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloom Energy has no effect on the direction of Plug Power i.e., Plug Power and Bloom Energy go up and down completely randomly.
Pair Corralation between Plug Power and Bloom Energy
Assuming the 90 days trading horizon Plug Power is expected to generate 2.47 times more return on investment than Bloom Energy. However, Plug Power is 2.47 times more volatile than Bloom Energy. It trades about 0.12 of its potential returns per unit of risk. Bloom Energy is currently generating about 0.0 per unit of risk. If you would invest 231.00 in Plug Power on October 12, 2024 and sell it today you would earn a total of 29.00 from holding Plug Power or generate 12.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plug Power vs. Bloom Energy
Performance |
| Timeline |
| Plug Power |
| Bloom Energy |
Plug Power and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plug Power and Bloom Energy
The main advantage of trading using opposite Plug Power and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, Bloom 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 Bloom Energy will offset losses from the drop in Bloom Energy's long position.| Plug Power vs. MOBILE FACTORY INC | Plug Power vs. Geely Automobile Holdings | Plug Power vs. NXP Semiconductors NV | Plug Power vs. BE Semiconductor Industries |
| Bloom Energy vs. Delta Electronics Public | Bloom Energy vs. Superior Plus Corp | Bloom Energy vs. NMI Holdings | Bloom Energy vs. SIVERS SEMICONDUCTORS AB |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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