Correlation Between Atlantic Power and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both Atlantic Power 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 Atlantic Power and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantic Power and Bloom Energy Corp, you can compare the effects of market volatilities on Atlantic Power 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 Atlantic Power with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Power and Bloom Energy.
Diversification Opportunities for Atlantic Power and Bloom Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atlantic and Bloom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Power 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 Atlantic Power 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 Atlantic Power 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 Atlantic Power i.e., Atlantic Power and Bloom Energy go up and down completely randomly.
Pair Corralation between Atlantic Power and Bloom Energy
If you would invest (100.00) in Atlantic Power on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Atlantic Power or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Atlantic Power vs. Bloom Energy Corp
Performance |
| Timeline |
| Atlantic Power |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bloom Energy Corp |
Atlantic Power and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Power and Bloom Energy
The main advantage of trading using opposite Atlantic Power and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Power 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.| Atlantic Power vs. Kontoor Brands | Atlantic Power vs. Flexible Solutions International | Atlantic Power vs. Shoe Carnival | Atlantic Power vs. American Eagle Outfitters |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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