Correlation Between Brenmiller Energy and NETGEAR
Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and NETGEAR 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 NETGEAR 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 NETGEAR, you can compare the effects of market volatilities on Brenmiller Energy and NETGEAR 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 NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and NETGEAR.
Diversification Opportunities for Brenmiller Energy and NETGEAR
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brenmiller and NETGEAR is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR 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 NETGEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETGEAR has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and NETGEAR go up and down completely randomly.
Pair Corralation between Brenmiller Energy and NETGEAR
Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to generate 3.02 times more return on investment than NETGEAR. However, Brenmiller Energy is 3.02 times more volatile than NETGEAR. It trades about 0.19 of its potential returns per unit of risk. NETGEAR is currently generating about 0.32 per unit of risk. If you would invest 83.00 in Brenmiller Energy Ltd on September 25, 2024 and sell it today you would earn a total of 22.00 from holding Brenmiller Energy Ltd or generate 26.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Brenmiller Energy Ltd vs. NETGEAR
Performance |
Timeline |
Brenmiller Energy |
NETGEAR |
Brenmiller Energy and NETGEAR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Brenmiller Energy and NETGEAR
The main advantage of trading using opposite Brenmiller Energy and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brenmiller Energy position performs unexpectedly, NETGEAR 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 NETGEAR will offset losses from the drop in NETGEAR's long position.Brenmiller Energy vs. Verde Clean Fuels | Brenmiller Energy vs. Smart Powerr Corp | Brenmiller Energy vs. Ormat Technologies | Brenmiller Energy vs. Tokyo Electric Power |
Check out your portfolio center.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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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