Correlation Between Tantalus Systems and Plug Power
Can any of the company-specific risk be diversified away by investing in both Tantalus Systems and Plug Power 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 Tantalus Systems and Plug Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tantalus Systems Holding and Plug Power, you can compare the effects of market volatilities on Tantalus Systems and Plug Power 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 Tantalus Systems with a short position of Plug Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tantalus Systems and Plug Power.
Diversification Opportunities for Tantalus Systems and Plug Power
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tantalus and Plug is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tantalus Systems Holding and Plug Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plug Power and Tantalus Systems 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 Tantalus Systems Holding are associated (or correlated) with Plug Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plug Power has no effect on the direction of Tantalus Systems i.e., Tantalus Systems and Plug Power go up and down completely randomly.
Pair Corralation between Tantalus Systems and Plug Power
Assuming the 90 days horizon Tantalus Systems is expected to generate 1.57 times less return on investment than Plug Power. But when comparing it to its historical volatility, Tantalus Systems Holding is 2.85 times less risky than Plug Power. It trades about 0.11 of its potential returns per unit of risk. Plug Power is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 194.00 in Plug Power on August 28, 2024 and sell it today you would earn a total of 26.00 from holding Plug Power or generate 13.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tantalus Systems Holding vs. Plug Power
Performance |
| Timeline |
| Tantalus Systems Holding |
| Plug Power |
Tantalus Systems and Plug Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tantalus Systems and Plug Power
The main advantage of trading using opposite Tantalus Systems and Plug Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tantalus Systems position performs unexpectedly, Plug Power 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 Plug Power will offset losses from the drop in Plug Power's long position.| Tantalus Systems vs. Signify NV | Tantalus Systems vs. AFC Energy plc | Tantalus Systems vs. Loop Energy | Tantalus Systems vs. Hydrogen Engine Center |
| Plug Power vs. Bloom Energy Corp | Plug Power vs. Microvast Holdings | Plug Power vs. Solid Power | Plug Power vs. CBAK Energy Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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