Correlation Between Us Global and Plug Power

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

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

Diversification Opportunities for Us Global and Plug Power

0.0

Correlation Coefficient

Us Global  Plug Power

Pay attention - limited upside

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

Pair Corralation between Us Global and Plug Power

If you would invest  79.00  in Plug Power on May 17, 2025 and sell it today you would earn a total of  86.00  from holding Plug Power or generate 108.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Us Global Nanospace  vs.  Plug Power

Us Global Nanospace

Risk-Adjusted Performance

Weakest

Over the last 90 days Us Global Nanospace has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Us Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Plug Power

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Plug Power are ranked lower than 14 (%) 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.

Pair Trading with Us Global and Plug Power

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

The idea behind Us Global Nanospace and Plug Power 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.