Correlation Between FlyExclusive, and Brenmiller Energy

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

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

Diversification Opportunities for FlyExclusive, and Brenmiller Energy

0.27

Correlation Coefficient

FlyExclusive,  Brenmiller Energy

Modest diversification

The 3 months correlation between FlyExclusive, and Brenmiller is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding flyExclusive, and Brenmiller Energy Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brenmiller Energy and FlyExclusive, 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 flyExclusive, are associated (or correlated) with Brenmiller Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brenmiller Energy has no effect on the direction of FlyExclusive, i.e., FlyExclusive, and Brenmiller Energy go up and down completely randomly.

Pair Corralation between FlyExclusive, and Brenmiller Energy

Given the investment horizon of 90 days flyExclusive, is expected to under-perform the Brenmiller Energy. But the stock apears to be less risky and, when comparing its historical volatility, flyExclusive, is 1.45 times less risky than Brenmiller Energy. The stock trades about -0.04 of its potential returns per unit of risk. The Brenmiller Energy Ltd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  87.00  in Brenmiller Energy Ltd on September 26, 2024 and sell it today you would earn a total of  18.00  from holding Brenmiller Energy Ltd or generate 20.69% return on investment over 90 days.

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

flyExclusive,  vs.  Brenmiller Energy Ltd

flyExclusive,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days flyExclusive, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Brenmiller Energy

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Brenmiller Energy Ltd are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Brenmiller Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FlyExclusive, and Brenmiller Energy

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

The idea behind flyExclusive, and Brenmiller Energy Ltd 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.