Correlation Between Brenmiller Energy and NIP Group

Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and NIP Group 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 NIP Group 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 NIP Group American, you can compare the effects of market volatilities on Brenmiller Energy and NIP Group 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 NIP Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and NIP Group.

Diversification Opportunities for Brenmiller Energy and NIP Group

-0.1

Correlation Coefficient

Brenmiller Energy  NIP Group

Good diversification

The 3 months correlation between Brenmiller and NIP is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and NIP Group American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIP Group American 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 NIP Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIP Group American has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and NIP Group go up and down completely randomly.

Pair Corralation between Brenmiller Energy and NIP Group

Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to generate 0.97 times more return on investment than NIP Group. However, Brenmiller Energy Ltd is 1.03 times less risky than NIP Group. It trades about 0.04 of its potential returns per unit of risk. NIP Group American is currently generating about -0.17 per unit of risk. If you would invest  136.00  in Brenmiller Energy Ltd on December 4, 2024 and sell it today you would earn a total of  0.00  from holding Brenmiller Energy Ltd or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Brenmiller Energy Ltd  vs.  NIP Group American

Brenmiller Energy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Brenmiller Energy Ltd are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Brenmiller Energy reported solid returns over the last few months and may actually be approaching a breakup point.

NIP Group American

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Brenmiller Energy and NIP Group

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

The idea behind Brenmiller Energy Ltd and NIP Group American 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.