Correlation Between FuelCell Energy and MAROC TELECOM

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

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

Diversification Opportunities for FuelCell Energy and MAROC TELECOM

-0.11

Correlation Coefficient

FuelCell Energy  MAROC TELECOM

Good diversification

The 3 months correlation between FuelCell and MAROC is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and MAROC TELECOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAROC TELECOM and FuelCell 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 FuelCell Energy are associated (or correlated) with MAROC TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAROC TELECOM has no effect on the direction of FuelCell Energy i.e., FuelCell Energy and MAROC TELECOM go up and down completely randomly.

Pair Corralation between FuelCell Energy and MAROC TELECOM

Assuming the 90 days trading horizon FuelCell Energy is expected to under-perform the MAROC TELECOM. In addition to that, FuelCell Energy is 15.18 times more volatile than MAROC TELECOM. It trades about -0.02 of its total potential returns per unit of risk. MAROC TELECOM is currently generating about 0.37 per unit of volatility. If you would invest  755.00  in MAROC TELECOM on October 4, 2024 and sell it today you would earn a total of  25.00  from holding MAROC TELECOM or generate 3.31% return on investment over 90 days.

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

FuelCell Energy  vs.  MAROC TELECOM

FuelCell Energy

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FuelCell Energy are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FuelCell Energy reported solid returns over the last few months and may actually be approaching a breakup point.

MAROC TELECOM

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MAROC TELECOM are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, MAROC TELECOM is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with FuelCell Energy and MAROC TELECOM

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

The idea behind FuelCell Energy and MAROC TELECOM 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.