Correlation Between Captivision Ordinary and Bloom Energy

Can any of the company-specific risk be diversified away by investing in both Captivision Ordinary and Bloom Energy 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 Captivision Ordinary and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Captivision Ordinary Shares and Bloom Energy Corp, you can compare the effects of market volatilities on Captivision Ordinary and Bloom Energy 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 Captivision Ordinary with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Captivision Ordinary and Bloom Energy.

Diversification Opportunities for Captivision Ordinary and Bloom Energy

-0.86

Correlation Coefficient

Captivision Ordinary  Bloom Energy

Pay attention - limited upside

The 3 months correlation between Captivision and Bloom is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Captivision Ordinary Shares and Bloom Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Energy Corp and Captivision Ordinary 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 Captivision Ordinary Shares are associated (or correlated) with Bloom Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloom Energy Corp has no effect on the direction of Captivision Ordinary i.e., Captivision Ordinary and Bloom Energy go up and down completely randomly.

Pair Corralation between Captivision Ordinary and Bloom Energy

Given the investment horizon of 90 days Captivision Ordinary Shares is expected to under-perform the Bloom Energy. In addition to that, Captivision Ordinary is 1.97 times more volatile than Bloom Energy Corp. It trades about -0.28 of its total potential returns per unit of risk. Bloom Energy Corp is currently generating about 0.11 per unit of volatility. If you would invest  2,420  in Bloom Energy Corp on October 23, 2024 and sell it today you would earn a total of  155.00  from holding Bloom Energy Corp or generate 6.4% return on investment over 90 days.

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

Captivision Ordinary Shares  vs.  Bloom Energy Corp

Captivision Ordinary

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Captivision Ordinary Shares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Bloom Energy Corp

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bloom Energy Corp are ranked lower than 17 (%) 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.

Pair Trading with Captivision Ordinary and Bloom Energy

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

The idea behind Captivision Ordinary Shares and Bloom Energy 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.