Correlation Between RoboGroup TEK and Bloom Energy

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

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

Diversification Opportunities for RoboGroup TEK and Bloom Energy

-0.04

Correlation Coefficient

RoboGroup TEK  Bloom Energy

Good diversification

The 3 months correlation between RoboGroup and Bloom is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding RoboGroup TEK 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 RoboGroup TEK 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 RoboGroup TEK 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 RoboGroup TEK i.e., RoboGroup TEK and Bloom Energy go up and down completely randomly.

Pair Corralation between RoboGroup TEK and Bloom Energy

If you would invest  30.00  in RoboGroup TEK on February 1, 2024 and sell it today you would earn a total of  0.00  from holding RoboGroup TEK or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	9.09%
Values	Daily Returns

RoboGroup TEK  vs.  Bloom Energy Corp

RoboGroup TEK

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days RoboGroup TEK has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly unfluctuating basic indicators, RoboGroup TEK reported solid returns over the last few months and may actually be approaching a breakup point.

Bloom Energy Corp

Risk-Adjusted Performance

0 of 100

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 RoboGroup TEK and Bloom Energy

The main advantage of trading using opposite RoboGroup TEK and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoboGroup TEK 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 RoboGroup TEK 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.