Correlation Between Bloom Energy and Globus Maritime

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

Diversification Opportunities for Bloom Energy and Globus Maritime

0.18

Correlation Coefficient

Bloom Energy  Globus Maritime

Average diversification

The 3 months correlation between Bloom and Globus is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Globus Maritime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Maritime 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 Globus Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Maritime has no effect on the direction of Bloom Energy i.e., Bloom Energy and Globus Maritime go up and down completely randomly.

Pair Corralation between Bloom Energy and Globus Maritime

Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 1.7 times more return on investment than Globus Maritime. However, Bloom Energy is 1.7 times more volatile than Globus Maritime. It trades about 0.02 of its potential returns per unit of risk. Globus Maritime is currently generating about 0.01 per unit of risk. If you would invest  2,290  in Bloom Energy Corp on December 27, 2024 and sell it today you would lose (62.00) from holding Bloom Energy Corp or give up 2.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bloom Energy Corp  vs.  Globus Maritime

Bloom Energy Corp

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bloom Energy Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Bloom Energy may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Globus Maritime

Risk-Adjusted Performance

Weak

Over the last 90 days Globus Maritime has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Globus Maritime 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 Globus Maritime

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

The idea behind Bloom Energy Corp and Globus Maritime 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.