Correlation Between Palantir Technologies and Fluence Energy
Can any of the company-specific risk be diversified away by investing in both Palantir Technologies and Fluence 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 Palantir Technologies and Fluence Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Palantir Technologies Class and Fluence Energy, you can compare the effects of market volatilities on Palantir Technologies and Fluence 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 Palantir Technologies with a short position of Fluence Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palantir Technologies and Fluence Energy.
Diversification Opportunities for Palantir Technologies and Fluence Energy
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Palantir and Fluence is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies Class and Fluence Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluence Energy and Palantir Technologies 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 Palantir Technologies Class are associated (or correlated) with Fluence Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluence Energy has no effect on the direction of Palantir Technologies i.e., Palantir Technologies and Fluence Energy go up and down completely randomly.
Pair Corralation between Palantir Technologies and Fluence Energy
Given the investment horizon of 90 days Palantir Technologies Class is expected to generate 0.58 times more return on investment than Fluence Energy. However, Palantir Technologies Class is 1.74 times less risky than Fluence Energy. It trades about 0.37 of its potential returns per unit of risk. Fluence Energy is currently generating about -0.27 per unit of risk. If you would invest 6,465 in Palantir Technologies Class on September 26, 2024 and sell it today you would earn a total of 1,851 from holding Palantir Technologies Class or generate 28.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Palantir Technologies Class vs. Fluence Energy
Performance |
Timeline |
Palantir Technologies |
Fluence Energy |
Palantir Technologies and Fluence Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Palantir Technologies and Fluence Energy
The main advantage of trading using opposite Palantir Technologies and Fluence Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palantir Technologies position performs unexpectedly, Fluence 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 Fluence Energy will offset losses from the drop in Fluence Energy's long position.Palantir Technologies vs. BlackBerry | Palantir Technologies vs. Global Blue Group | Palantir Technologies vs. Aurora Mobile | Palantir Technologies vs. Marqeta |
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Check out your portfolio center.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.
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