Correlation Between Bloom Energy and Us Global

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

Diversification Opportunities for Bloom Energy and Us Global

0.0

Correlation Coefficient

Bloom Energy  Us Global

Pay attention - limited upside

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

Pair Corralation between Bloom Energy and Us Global

If you would invest  1,103  in Bloom Energy Corp on September 5, 2024 and sell it today you would earn a total of  1,511  from holding Bloom Energy Corp or generate 136.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Bloom Energy Corp  vs.  Us Global Nanospace

Bloom Energy Corp

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bloom Energy Corp are ranked lower than 14 (%) 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.

Us Global Nanospace

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Us Global Nanospace has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Us Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bloom Energy and Us Global

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

The idea behind Bloom Energy Corp and Us Global Nanospace 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.