Correlation Between Curtiss Wright and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright 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 Curtiss Wright and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Bloom Energy Corp, you can compare the effects of market volatilities on Curtiss Wright 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 Curtiss Wright with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Bloom Energy.
Diversification Opportunities for Curtiss Wright and Bloom Energy
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Curtiss and Bloom is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright 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 Curtiss Wright 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 Curtiss Wright 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 Curtiss Wright i.e., Curtiss Wright and Bloom Energy go up and down completely randomly.
Pair Corralation between Curtiss Wright and Bloom Energy
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 8.51 times less return on investment than Bloom Energy. But when comparing it to its historical volatility, Curtiss Wright is 3.85 times less risky than Bloom Energy. It trades about 0.1 of its potential returns per unit of risk. Bloom Energy Corp is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 4,650 in Bloom Energy Corp on August 17, 2025 and sell it today you would earn a total of 6,539 from holding Bloom Energy Corp or generate 140.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Curtiss Wright vs. Bloom Energy Corp
Performance |
| Timeline |
| Curtiss Wright |
| Bloom Energy Corp |
Curtiss Wright and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Curtiss Wright and Bloom Energy
The main advantage of trading using opposite Curtiss Wright and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright 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.| Curtiss Wright vs. Elbit Systems | Curtiss Wright vs. BWX Technologies | Curtiss Wright vs. Woodward | Curtiss Wright vs. AerCap Holdings NV |
| Bloom Energy vs. Comfort Systems USA | Bloom Energy vs. Hubbell | Bloom Energy vs. United Airlines Holdings | Bloom Energy vs. EMCOR Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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