Correlation Between YASKAWA ELEC and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both YASKAWA ELEC and Bloom 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 YASKAWA ELEC and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YASKAWA ELEC UNSP and Bloom Energy, you can compare the effects of market volatilities on YASKAWA ELEC 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 YASKAWA ELEC with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of YASKAWA ELEC and Bloom Energy.
Diversification Opportunities for YASKAWA ELEC and Bloom Energy
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YASKAWA and Bloom is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding YASKAWA ELEC UNSP and Bloom Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Energy and YASKAWA ELEC 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 YASKAWA ELEC UNSP 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 YASKAWA ELEC i.e., YASKAWA ELEC and Bloom Energy go up and down completely randomly.
Pair Corralation between YASKAWA ELEC and Bloom Energy
Assuming the 90 days trading horizon YASKAWA ELEC UNSP is expected to under-perform the Bloom Energy. But the stock apears to be less risky and, when comparing its historical volatility, YASKAWA ELEC UNSP is 9.12 times less risky than Bloom Energy. The stock trades about -0.02 of its potential returns per unit of risk. The Bloom Energy is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 866.00 in Bloom Energy on August 25, 2024 and sell it today you would earn a total of 1,634 from holding Bloom Energy or generate 188.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YASKAWA ELEC UNSP vs. Bloom Energy
Performance |
| Timeline |
| YASKAWA ELEC UNSP |
| Bloom Energy |
YASKAWA ELEC and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YASKAWA ELEC and Bloom Energy
The main advantage of trading using opposite YASKAWA ELEC and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YASKAWA ELEC 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.| YASKAWA ELEC vs. GREENX METALS LTD | YASKAWA ELEC vs. Western Copper and | YASKAWA ELEC vs. FIREWEED METALS P | YASKAWA ELEC vs. SHELF DRILLING LTD |
| Bloom Energy vs. Grupo Carso SAB | Bloom Energy vs. Cars Inc | Bloom Energy vs. Commercial Vehicle Group | Bloom Energy vs. Motorcar Parts of |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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