Correlation Between MOAB MINERALS and FuelCell Energy
Can any of the company-specific risk be diversified away by investing in both MOAB MINERALS and FuelCell Energy 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 MOAB MINERALS and FuelCell Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOAB MINERALS LTD and FuelCell Energy, you can compare the effects of market volatilities on MOAB MINERALS 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 MOAB MINERALS with a short position of FuelCell Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOAB MINERALS and FuelCell Energy.
Diversification Opportunities for MOAB MINERALS and FuelCell Energy
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MOAB and FuelCell is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding MOAB MINERALS LTD and FuelCell Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelCell Energy and MOAB MINERALS 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 MOAB MINERALS LTD 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 MOAB MINERALS i.e., MOAB MINERALS and FuelCell Energy go up and down completely randomly.
Pair Corralation between MOAB MINERALS and FuelCell Energy
Assuming the 90 days trading horizon MOAB MINERALS LTD is expected to generate 5.17 times more return on investment than FuelCell Energy. However, MOAB MINERALS is 5.17 times more volatile than FuelCell Energy. It trades about 0.06 of its potential returns per unit of risk. FuelCell Energy is currently generating about -0.05 per unit of risk. If you would invest 0.10 in MOAB MINERALS LTD on September 24, 2024 and sell it today you would lose (0.05) from holding MOAB MINERALS LTD or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
MOAB MINERALS LTD vs. FuelCell Energy
Performance |
| Timeline |
| MOAB MINERALS LTD |
| FuelCell Energy |
MOAB MINERALS and FuelCell Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOAB MINERALS and FuelCell Energy
The main advantage of trading using opposite MOAB MINERALS and FuelCell Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOAB MINERALS 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.| MOAB MINERALS vs. Apple Inc | MOAB MINERALS vs. Apple Inc | MOAB MINERALS vs. Apple Inc | MOAB MINERALS vs. Apple Inc |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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