Correlation Between FuelCell Energy and Energy Services
Can any of the company-specific risk be diversified away by investing in both FuelCell Energy and Energy Services 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 FuelCell Energy and Energy Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelCell Energy and Energy Services, you can compare the effects of market volatilities on FuelCell Energy and Energy Services 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 FuelCell Energy with a short position of Energy Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelCell Energy and Energy Services.
Diversification Opportunities for FuelCell Energy and Energy Services
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FuelCell and Energy is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Services and FuelCell Energy 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 FuelCell Energy are associated (or correlated) with Energy Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Services has no effect on the direction of FuelCell Energy i.e., FuelCell Energy and Energy Services go up and down completely randomly.
Pair Corralation between FuelCell Energy and Energy Services
Given the investment horizon of 90 days FuelCell Energy is expected to generate 2.28 times more return on investment than Energy Services. However, FuelCell Energy is 2.28 times more volatile than Energy Services. It trades about 0.14 of its potential returns per unit of risk. Energy Services is currently generating about 0.02 per unit of risk. If you would invest 393.00 in FuelCell Energy on August 20, 2025 and sell it today you would earn a total of 264.00 from holding FuelCell Energy or generate 67.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
FuelCell Energy vs. Energy Services
Performance |
| Timeline |
| FuelCell Energy |
| Energy Services |
FuelCell Energy and Energy Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FuelCell Energy and Energy Services
The main advantage of trading using opposite FuelCell Energy and Energy Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelCell Energy position performs unexpectedly, Energy Services 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 Energy Services will offset losses from the drop in Energy Services' long position.| FuelCell Energy vs. SKYX Platforms Corp | FuelCell Energy vs. Microvast Holdings | FuelCell Energy vs. Chardan NexTech Acquisition | FuelCell Energy vs. Blink Charging Co |
| Energy Services vs. Blink Charging Co | Energy Services vs. One and One | Energy Services vs. Diana Shipping | Energy Services vs. Ammo Inc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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