Bloom Energy (Germany) Volatility
| 1ZB Stock | EUR 22.42 0.48 2.10% |
Bloom Energy is slightly risky given 3 months investment horizon. Bloom Energy secures Sharpe Ratio (or Efficiency) of 0.15, which signifies that the company had a 0.15% return per unit of risk over the last 3 months. We were able to interpolate twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.67% are justified by taking the suggested risk. Use Bloom Energy Risk Adjusted Performance of 0.1419, mean deviation of 4.97, and Downside Deviation of 4.42 to evaluate company specific risk that cannot be diversified away. Key indicators related to Bloom Energy's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Bloom Energy Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Bloom daily returns, and it is calculated using variance and standard deviation. We also use Bloom's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Bloom Energy volatility.
Bloom |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Bloom Energy can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Bloom Energy at lower prices to lower their average cost per share. Similarly, when the prices of Bloom Energy's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Bloom Stock
| 0.69 | NVAW | Delta Electronics Public | PairCorr |
| 0.82 | 49V | VERTIV HOLCL A | PairCorr |
| 0.86 | OSR | OSRAM LICHT N | PairCorr |
Moving against Bloom Stock
| 0.83 | BZG2 | BANK CENTRAL ASIA | PairCorr |
| 0.8 | PQ9 | BANK MANDIRI | PairCorr |
| 0.78 | BYRA | PT Bank Rakyat | PairCorr |
| 0.77 | BYRA | BANK RAKYAT IND | PairCorr |
| 0.76 | PQ9 | PT Bank Mandiri | PairCorr |
| 0.76 | PQ9 | BANK MANDIRI | PairCorr |
| 0.76 | PQ9 | BANK MANDIRI | PairCorr |
| 0.68 | YEC0 | YASKAWA ELEC UNSP | PairCorr |
| 0.66 | 703 | Alfen NV | PairCorr |
Bloom Energy Market Sensitivity And Downside Risk
Bloom Energy's beta coefficient measures the volatility of Bloom stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Bloom stock's returns against your selected market. In other words, Bloom Energy's beta of -0.47 provides an investor with an approximation of how much risk Bloom Energy stock can potentially add to one of your existing portfolios. Bloom Energy is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bloom Energy's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bloom Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Bloom Energy Demand TrendCheck current 90 days Bloom Energy correlation with market (Dow Jones Industrial)Bloom Beta |
Bloom standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 10.89 |
It is essential to understand the difference between upside risk (as represented by Bloom Energy's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Bloom Energy's daily returns or price. Since the actual investment returns on holding a position in bloom stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Bloom Energy.
Bloom Energy Stock Volatility Analysis
Volatility refers to the frequency at which Bloom Energy stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Bloom Energy's price changes. Investors will then calculate the volatility of Bloom Energy's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Bloom Energy's volatility:
Historical Volatility
This type of stock volatility measures Bloom Energy's fluctuations based on previous trends. It's commonly used to predict Bloom Energy's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Bloom Energy's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Bloom Energy's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Bloom Energy Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Bloom Energy Projected Return Density Against Market
Assuming the 90 days horizon Bloom Energy has a beta of -0.4665 . This suggests as returns on the benchmark increase, returns on holding Bloom Energy are expected to decrease at a much lower rate. During a bear market, however, Bloom Energy is likely to outperform the market.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Bloom Energy or Industrials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Bloom Energy's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Bloom stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Bloom Energy has an alpha of 1.8321, implying that it can generate a 1.83 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Bloom Energy Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Bloom Energy Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Bloom Energy is 652.79. The daily returns are distributed with a variance of 118.49 and standard deviation of 10.89. The mean deviation of Bloom Energy is currently at 4.8. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | 1.83 | |
β | Beta against Dow Jones | -0.47 | |
σ | Overall volatility | 10.89 | |
Ir | Information ratio | 0.16 |
Bloom Energy Stock Return Volatility
Bloom Energy historical daily return volatility represents how much of Bloom Energy stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 10.8853% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7982% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Bloom Energy Volatility
Volatility is a rate at which the price of Bloom Energy or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Bloom Energy may increase or decrease. In other words, similar to Bloom's beta indicator, it measures the risk of Bloom Energy and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bloom Energy fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.Bloom Energy Corporation designs, manufactures, and sells solid-oxide fuel cell systems for on-site power generation in the United States, Japan, China, India, and the Republic of Korea. Bloom Energy Corporation was incorporated in 2001 and is headquartered in San Jose, California. BLOOM ENERGY operates under Electrical Equipment Parts classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1316 people.
Bloom Energy's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Bloom Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Bloom Energy's price varies over time.
3 ways to utilize Bloom Energy's volatility to invest better
Higher Bloom Energy's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Bloom Energy stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Bloom Energy stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Bloom Energy investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Bloom Energy's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Bloom Energy's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Bloom Energy Investment Opportunity
Bloom Energy has a volatility of 10.89 and is 13.61 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Bloom Energy is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Bloom Energy to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Bloom Energy to be traded at €21.52 in 90 days.Good diversification
The correlation between Bloom Energy and DJI is -0.03 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Energy and DJI in the same portfolio, assuming nothing else is changed.
Bloom Energy Additional Risk Indicators
The analysis of Bloom Energy's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Bloom Energy's investment and either accepting that risk or mitigating it. Along with some common measures of Bloom Energy stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.1419 | |||
| Market Risk Adjusted Performance | (3.90) | |||
| Mean Deviation | 4.97 | |||
| Semi Deviation | 3.41 | |||
| Downside Deviation | 4.42 | |||
| Coefficient Of Variation | 597.33 | |||
| Standard Deviation | 10.94 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Bloom Energy Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
| Morgan Stanley vs. Bloom Energy | ||
| Visa vs. Bloom Energy | ||
| GM vs. Bloom Energy | ||
| Armada Hflr vs. Bloom Energy | ||
| Nasdaq vs. Bloom Energy | ||
| Walgreens Boots vs. Bloom Energy | ||
| Micron Technology vs. Bloom Energy |
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Bloom Energy as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Bloom Energy's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Bloom Energy's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Bloom Energy.
Complementary Tools for Bloom Stock analysis
When running Bloom Energy's price analysis, check to measure Bloom Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Bloom Energy is operating at the current time. Most of Bloom Energy's value examination focuses on studying past and present price action to predict the probability of Bloom Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bloom Energy's price. Additionally, you may evaluate how the addition of Bloom Energy to your portfolios can decrease your overall portfolio volatility.
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |