Correlation Between Curtiss Wright and Bloom Energy

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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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Curtiss Wright  vs.  Bloom Energy Corp

 Performance 
       Timeline  
Curtiss Wright 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Curtiss Wright are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Curtiss Wright may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Bloom Energy Corp 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Bloom Energy Corp are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Bloom Energy exhibited solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind Curtiss Wright 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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