Correlation Between YASKAWA ELEC and Bloom Energy

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

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

Diversification Opportunities for YASKAWA ELEC and Bloom Energy

-0.5

Correlation Coefficient

YASKAWA ELEC  Bloom Energy

Very good diversification

The 3 months correlation between YASKAWA and Bloom is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding YASKAWA ELEC UNSP and Bloom Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Energy and YASKAWA ELEC 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 YASKAWA ELEC UNSP 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 has no effect on the direction of YASKAWA ELEC i.e., YASKAWA ELEC and Bloom Energy go up and down completely randomly.

Pair Corralation between YASKAWA ELEC and Bloom Energy

Assuming the 90 days trading horizon YASKAWA ELEC is expected to generate 3.16 times less return on investment than Bloom Energy. But when comparing it to its historical volatility, YASKAWA ELEC UNSP is 1.35 times less risky than Bloom Energy. It trades about 0.05 of its potential returns per unit of risk. Bloom Energy is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,586  in Bloom Energy on April 23, 2025 and sell it today you would earn a total of  478.00  from holding Bloom Energy or generate 30.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

YASKAWA ELEC UNSP  vs.  Bloom Energy

YASKAWA ELEC UNSP

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in YASKAWA ELEC UNSP are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, YASKAWA ELEC may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Bloom Energy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bloom Energy are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Bloom Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YASKAWA ELEC and Bloom Energy

The main advantage of trading using opposite YASKAWA ELEC and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YASKAWA ELEC 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 YASKAWA ELEC UNSP and Bloom Energy 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.