Correlation Between Brenmiller Energy and Triad Pro

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

Diversification Opportunities for Brenmiller Energy and Triad Pro

0.61

Correlation Coefficient

Brenmiller Energy  Triad Pro

Poor diversification

The 3 months correlation between Brenmiller and Triad is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and Triad Pro Innovators in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triad Pro Innovators 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 Triad Pro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triad Pro Innovators has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and Triad Pro go up and down completely randomly.

Pair Corralation between Brenmiller Energy and Triad Pro

Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to generate 0.93 times more return on investment than Triad Pro. However, Brenmiller Energy Ltd is 1.07 times less risky than Triad Pro. It trades about -0.07 of its potential returns per unit of risk. Triad Pro Innovators is currently generating about -0.18 per unit of risk. If you would invest  126.00  in Brenmiller Energy Ltd on September 4, 2024 and sell it today you would lose (46.00) from holding Brenmiller Energy Ltd or give up 36.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Brenmiller Energy Ltd  vs.  Triad Pro Innovators

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 weak 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.

Triad Pro Innovators

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Triad Pro Innovators has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Brenmiller Energy and Triad Pro

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

The idea behind Brenmiller Energy Ltd and Triad Pro Innovators 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.