Correlation Between Ozop Surgical and Bloom Energy

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

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

Diversification Opportunities for Ozop Surgical and Bloom Energy

0.27

Correlation Coefficient

Ozop Surgical  Bloom Energy

Modest diversification

The 3 months correlation between Ozop and Bloom is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ozop Surgical Corp 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 Ozop Surgical 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 Ozop Surgical Corp 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 Ozop Surgical i.e., Ozop Surgical and Bloom Energy go up and down completely randomly.

Pair Corralation between Ozop Surgical and Bloom Energy

Given the investment horizon of 90 days Ozop Surgical Corp is expected to under-perform the Bloom Energy. In addition to that, Ozop Surgical is 2.61 times more volatile than Bloom Energy Corp. It trades about -0.08 of its total potential returns per unit of risk. Bloom Energy Corp is currently generating about -0.02 per unit of volatility. If you would invest  2,628  in Bloom Energy Corp on December 4, 2024 and sell it today you would lose (358.00) from holding Bloom Energy Corp or give up 13.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Ozop Surgical Corp  vs.  Bloom Energy Corp

Ozop Surgical Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ozop Surgical Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Bloom Energy Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bloom Energy Corp has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Pair Trading with Ozop Surgical and Bloom Energy

The main advantage of trading using opposite Ozop Surgical and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ozop Surgical 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 Ozop Surgical Corp 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 CEOs Directory module to screen CEOs from public companies around the world.