Correlation Between Brenmiller Energy and 06417XAG6

Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and 06417XAG6 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 Brenmiller Energy and 06417XAG6 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brenmiller Energy Ltd and BNS 4588 04 MAY 37, you can compare the effects of market volatilities on Brenmiller Energy and 06417XAG6 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 Brenmiller Energy with a short position of 06417XAG6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and 06417XAG6.

Diversification Opportunities for Brenmiller Energy and 06417XAG6

0.33

Correlation Coefficient

Brenmiller Energy  06417XAG6

Weak diversification

The 3 months correlation between Brenmiller and 06417XAG6 is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and BNS 4588 04 MAY 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNS 4588 04 and Brenmiller 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 Brenmiller Energy Ltd are associated (or correlated) with 06417XAG6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNS 4588 04 has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and 06417XAG6 go up and down completely randomly.

Pair Corralation between Brenmiller Energy and 06417XAG6

Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to under-perform the 06417XAG6. In addition to that, Brenmiller Energy is 5.28 times more volatile than BNS 4588 04 MAY 37. It trades about -0.14 of its total potential returns per unit of risk. BNS 4588 04 MAY 37 is currently generating about -0.1 per unit of volatility. If you would invest  9,536  in BNS 4588 04 MAY 37 on September 14, 2024 and sell it today you would lose (460.00) from holding BNS 4588 04 MAY 37 or give up 4.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	92.06%
Values	Daily Returns

Brenmiller Energy Ltd  vs.  BNS 4588 04 MAY 37

Brenmiller Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brenmiller Energy Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

BNS 4588 04

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BNS 4588 04 MAY 37 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 06417XAG6 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Brenmiller Energy and 06417XAG6

The main advantage of trading using opposite Brenmiller Energy and 06417XAG6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brenmiller Energy position performs unexpectedly, 06417XAG6 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 06417XAG6 will offset losses from the drop in 06417XAG6's long position.

The idea behind Brenmiller Energy Ltd and BNS 4588 04 MAY 37 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.