Correlation Between Brenmiller Energy and NESNVX

Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and NESNVX 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 NESNVX 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 NESNVX 485 14 MAR 33, you can compare the effects of market volatilities on Brenmiller Energy and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and NESNVX.

Diversification Opportunities for Brenmiller Energy and NESNVX

-0.13

Correlation Coefficient

Brenmiller Energy  NESNVX

Good diversification

The 3 months correlation between Brenmiller and NESNVX is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and NESNVX 485 14 MAR 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 485 14 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 485 14 has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and NESNVX go up and down completely randomly.

Pair Corralation between Brenmiller Energy and NESNVX

Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to generate 42.75 times more return on investment than NESNVX. However, Brenmiller Energy is 42.75 times more volatile than NESNVX 485 14 MAR 33. It trades about 0.19 of its potential returns per unit of risk. NESNVX 485 14 MAR 33 is currently generating about -0.2 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	28.57%
Values	Daily Returns

Brenmiller Energy Ltd  vs.  NESNVX 485 14 MAR 33

Brenmiller Energy

Risk-Adjusted Performance

4 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Brenmiller Energy Ltd are ranked lower than 4 (%) 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.

NESNVX 485 14

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 485 14 MAR 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NESNVX 485 14 MAR 33 investors.

Pair Trading with Brenmiller Energy and NESNVX

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

The idea behind Brenmiller Energy Ltd and NESNVX 485 14 MAR 33 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.