Correlation Between Plug Power and Us Global

Can any of the company-specific risk be diversified away by investing in both Plug Power and Us Global 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 Plug Power and Us Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Plug Power and Us Global Nanospace, you can compare the effects of market volatilities on Plug Power and Us Global 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 Plug Power with a short position of Us Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and Us Global.

Diversification Opportunities for Plug Power and Us Global

0.0

Correlation Coefficient

Plug Power  Us Global

Pay attention - limited upside

The 3 months correlation between Plug and USGA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and Us Global Nanospace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Global Nanospace and Plug Power 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 Plug Power are associated (or correlated) with Us Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Global Nanospace has no effect on the direction of Plug Power i.e., Plug Power and Us Global go up and down completely randomly.

Pair Corralation between Plug Power and Us Global

Given the investment horizon of 90 days Plug Power is expected to generate 12.78 times less return on investment than Us Global. But when comparing it to its historical volatility, Plug Power is 15.75 times less risky than Us Global. It trades about 0.16 of its potential returns per unit of risk. Us Global Nanospace is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Us Global Nanospace on May 29, 2025 and sell it today you would earn a total of  0.00  from holding Us Global Nanospace or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Plug Power  vs.  Us Global Nanospace

Plug Power

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Plug Power are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Plug Power reported solid returns over the last few months and may actually be approaching a breakup point.

Us Global Nanospace

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Us Global Nanospace are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile technical and fundamental indicators, Us Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Plug Power and Us Global

The main advantage of trading using opposite Plug Power and Us Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, Us Global 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 Us Global will offset losses from the drop in Us Global's long position.

The idea behind Plug Power and Us Global Nanospace 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 Transaction History module to view history of all your transactions and understand their impact on performance.