Correlation Between Armada Hflr and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both Armada Hflr 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 Armada Hflr and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and Bloom Energy, you can compare the effects of market volatilities on Armada Hflr 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 Armada Hflr with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Bloom Energy.
Diversification Opportunities for Armada Hflr and Bloom Energy
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Armada and Bloom is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Bloom Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Energy and Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and Bloom Energy go up and down completely randomly.
Pair Corralation between Armada Hflr and Bloom Energy
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.29 times more return on investment than Bloom Energy. However, Armada Hflr Pr is 3.43 times less risky than Bloom Energy. It trades about -0.29 of its potential returns per unit of risk. Bloom Energy is currently generating about -0.09 per unit of risk. If you would invest 1,107 in Armada Hflr Pr on September 23, 2024 and sell it today you would lose (82.00) from holding Armada Hflr Pr or give up 7.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Armada Hflr Pr vs. Bloom Energy
Performance |
Timeline |
Armada Hflr Pr |
Bloom Energy |
Armada Hflr and Bloom Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Bloom Energy
The main advantage of trading using opposite Armada Hflr and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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.Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
Bloom Energy vs. Delta Electronics Public | Bloom Energy vs. YASKAWA ELEC UNSP | Bloom Energy vs. Plug Power | Bloom Energy vs. VERTIV HOLCL A |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Positions Ratings 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 | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |