Correlation Between Bloom Energy and Heramba Electric

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

Diversification Opportunities for Bloom Energy and Heramba Electric

-0.02

Correlation Coefficient

Bloom Energy  Heramba Electric

Good diversification

The 3 months correlation between Bloom and Heramba is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy Corp and Heramba Electric plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heramba Electric plc 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 Heramba Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heramba Electric plc has no effect on the direction of Bloom Energy i.e., Bloom Energy and Heramba Electric go up and down completely randomly.

Pair Corralation between Bloom Energy and Heramba Electric

Allowing for the 90-day total investment horizon Bloom Energy Corp is expected to generate 0.37 times more return on investment than Heramba Electric. However, Bloom Energy Corp is 2.72 times less risky than Heramba Electric. It trades about 0.02 of its potential returns per unit of risk. Heramba Electric plc is currently generating about -0.12 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 (91.00) from holding Bloom Energy Corp or give up 3.97% of portfolio value over 90 days.

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

Bloom Energy Corp  vs.  Heramba Electric plc

Bloom Energy Corp

Risk-Adjusted Performance

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 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.

Heramba Electric plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Heramba Electric plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Bloom Energy and Heramba Electric

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

The idea behind Bloom Energy Corp and Heramba Electric plc 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.