Correlation Between Quantumscape Corp and Bloom Energy

Can any of the company-specific risk be diversified away by investing in both Quantumscape Corp 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 Quantumscape Corp and Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Quantumscape Corp and Bloom Energy Corp, you can compare the effects of market volatilities on Quantumscape Corp 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 Quantumscape Corp with a short position of Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantumscape Corp and Bloom Energy.

Diversification Opportunities for Quantumscape Corp and Bloom Energy

0.83

Correlation Coefficient

Quantumscape Corp  Bloom Energy

Very poor diversification

The 3 months correlation between Quantumscape and Bloom is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Quantumscape Corp 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 Quantumscape Corp 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 Quantumscape Corp 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 Quantumscape Corp i.e., Quantumscape Corp and Bloom Energy go up and down completely randomly.

Pair Corralation between Quantumscape Corp and Bloom Energy

Allowing for the 90-day total investment horizon Quantumscape Corp is expected to generate 2.68 times less return on investment than Bloom Energy. In addition to that, Quantumscape Corp is 1.18 times more volatile than Bloom Energy Corp. It trades about 0.1 of its total potential returns per unit of risk. Bloom Energy Corp is currently generating about 0.31 per unit of volatility. If you would invest  3,478  in Bloom Energy Corp on July 26, 2025 and sell it today you would earn a total of  6,664  from holding Bloom Energy Corp or generate 191.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Quantumscape Corp  vs.  Bloom Energy Corp

Quantumscape Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Quantumscape Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Quantumscape Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bloom Energy Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bloom Energy Corp are ranked lower than 24 (%) 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.

Pair Trading with Quantumscape Corp and Bloom Energy

The main advantage of trading using opposite Quantumscape Corp and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantumscape Corp 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 Quantumscape Corp 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.