Correlation Between Plug Power and FuelCell Energy
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By analyzing existing cross correlation between Plug Power and FuelCell Energy, you can compare the effects of market volatilities on Plug Power and FuelCell 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 FuelCell Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and FuelCell Energy.
Diversification Opportunities for Plug Power and FuelCell Energy
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Plug and FuelCell is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and FuelCell Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelCell 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 FuelCell Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FuelCell Energy has no effect on the direction of Plug Power i.e., Plug Power and FuelCell Energy go up and down completely randomly.
Pair Corralation between Plug Power and FuelCell Energy
Assuming the 90 days trading horizon Plug Power is expected to generate 0.91 times more return on investment than FuelCell Energy. However, Plug Power is 1.09 times less risky than FuelCell Energy. It trades about 0.23 of its potential returns per unit of risk. FuelCell Energy is currently generating about -0.05 per unit of risk. If you would invest 187.00 in Plug Power on September 24, 2024 and sell it today you would earn a total of 57.00 from holding Plug Power or generate 30.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Plug Power vs. FuelCell Energy
Performance |
| Timeline |
| Plug Power |
| FuelCell Energy |
Plug Power and FuelCell Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plug Power and FuelCell Energy
The main advantage of trading using opposite Plug Power and FuelCell Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, FuelCell 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 FuelCell Energy will offset losses from the drop in FuelCell Energy's long position.| Plug Power vs. Delta Electronics Public | Plug Power vs. YASKAWA ELEC UNSP | Plug Power vs. VERTIV HOLCL A | Plug Power vs. OSRAM LICHT N |
| FuelCell Energy vs. DIVERSIFIED ROYALTY | FuelCell Energy vs. BJs Wholesale Club | FuelCell Energy vs. COSTCO WHOLESALE CDR | FuelCell Energy vs. Vastned Retail NV |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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