Correlation Between Resources Connection and FuelCell Energy
Can any of the company-specific risk be diversified away by investing in both Resources Connection and FuelCell 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 Resources Connection and FuelCell Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Resources Connection and FuelCell Energy, you can compare the effects of market volatilities on Resources Connection and FuelCell 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 Resources Connection with a short position of FuelCell Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Resources Connection and FuelCell Energy.
Diversification Opportunities for Resources Connection and FuelCell Energy
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Resources and FuelCell is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Resources Connection and FuelCell Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelCell Energy and Resources Connection 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 Resources Connection are associated (or correlated) with FuelCell Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FuelCell Energy has no effect on the direction of Resources Connection i.e., Resources Connection and FuelCell Energy go up and down completely randomly.
Pair Corralation between Resources Connection and FuelCell Energy
Considering the 90-day investment horizon Resources Connection is expected to generate 10.74 times less return on investment than FuelCell Energy. But when comparing it to its historical volatility, Resources Connection is 2.7 times less risky than FuelCell Energy. It trades about 0.04 of its potential returns per unit of risk. FuelCell Energy is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 398.00 in FuelCell Energy on August 21, 2025 and sell it today you would earn a total of 273.00 from holding FuelCell Energy or generate 68.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Resources Connection vs. FuelCell Energy
Performance |
| Timeline |
| Resources Connection |
| FuelCell Energy |
Resources Connection and FuelCell Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Resources Connection and FuelCell Energy
The main advantage of trading using opposite Resources Connection and FuelCell Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Resources Connection position performs unexpectedly, FuelCell 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 FuelCell Energy will offset losses from the drop in FuelCell Energy's long position.| Resources Connection vs. Forrester Research | Resources Connection vs. Roma Green Finance | Resources Connection vs. GLCP | Resources Connection vs. Blink Charging Co |
| FuelCell Energy vs. SKYX Platforms Corp | FuelCell Energy vs. Microvast Holdings | FuelCell Energy vs. Chardan NexTech Acquisition | FuelCell Energy vs. Blink Charging Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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