Correlation Between Bloom Energy and ASGN

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Can any of the company-specific risk be diversified away by investing in both Bloom Energy and ASGN 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 Bloom Energy and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloom Energy Corp and ASGN Inc, you can compare the effects of market volatilities on Bloom Energy and ASGN 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 Bloom Energy with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and ASGN.

Diversification Opportunities for Bloom Energy and ASGN

-0.73
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Bloom and ASGN is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and Bloom Energy 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 Bloom Energy Corp are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of Bloom Energy i.e., Bloom Energy and ASGN go up and down completely randomly.

Pair Corralation between Bloom Energy and ASGN

Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 3.07 times more return on investment than ASGN. However, Bloom Energy is 3.07 times more volatile than ASGN Inc. It trades about -0.03 of its potential returns per unit of risk. ASGN Inc is currently generating about -0.19 per unit of risk. If you would invest  2,658  in Bloom Energy Corp on October 9, 2024 and sell it today you would lose (110.00) from holding Bloom Energy Corp or give up 4.14% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Bloom Energy Corp  vs.  ASGN Inc

 Performance 
       Timeline  
Bloom Energy Corp 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Bloom Energy Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Bloom Energy exhibited solid returns over the last few months and may actually be approaching a breakup point.
ASGN Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ASGN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Bloom Energy and ASGN Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bloom Energy and ASGN

The main advantage of trading using opposite Bloom Energy and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.
The idea behind Bloom Energy Corp and ASGN Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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