Correlation Between Bloom Energy and Dais Analytic

Can any of the company-specific risk be diversified away by investing in both Bloom Energy and Dais Analytic 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 Dais Analytic 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 Dais Analytic Corp, you can compare the effects of market volatilities on Bloom Energy and Dais Analytic 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 Dais Analytic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Energy and Dais Analytic.

Diversification Opportunities for Bloom Energy and Dais Analytic

0.0

Correlation Coefficient

Bloom Energy  Dais Analytic

Pay attention - limited upside

The 3 months correlation between Bloom and Dais is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Dais Analytic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dais Analytic Corp 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 Dais Analytic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dais Analytic Corp has no effect on the direction of Bloom Energy i.e., Bloom Energy and Dais Analytic go up and down completely randomly.

Pair Corralation between Bloom Energy and Dais Analytic

If you would invest  2,433  in Bloom Energy Corp on December 26, 2024 and sell it today you would lose (130.00) from holding Bloom Energy Corp or give up 5.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Bloom Energy Corp  vs.  Dais Analytic Corp

Bloom Energy Corp

Risk-Adjusted Performance

Weak

Over the last 90 days Bloom Energy Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Bloom Energy is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Dais Analytic Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dais Analytic Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Dais Analytic is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Bloom Energy and Dais Analytic

The main advantage of trading using opposite Bloom Energy and Dais Analytic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Energy position performs unexpectedly, Dais Analytic 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 Dais Analytic will offset losses from the drop in Dais Analytic's long position.

The idea behind Bloom Energy Corp and Dais Analytic Corp 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.