Correlation Between Brenmiller Energy and Sirius

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

Diversification Opportunities for Brenmiller Energy and Sirius

0.51

Correlation Coefficient

Brenmiller Energy  Sirius

Very weak diversification

The 3 months correlation between Brenmiller and Sirius is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and Sirius XM Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirius XM Holdings 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 Sirius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sirius XM Holdings has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and Sirius go up and down completely randomly.

Pair Corralation between Brenmiller Energy and Sirius

Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to generate 5.78 times more return on investment than Sirius. However, Brenmiller Energy is 5.78 times more volatile than Sirius XM Holdings. It trades about 0.08 of its potential returns per unit of risk. Sirius XM Holdings is currently generating about 0.0 per unit of risk. If you would invest  83.00  in Brenmiller Energy Ltd on September 24, 2024 and sell it today you would earn a total of  5.00  from holding Brenmiller Energy Ltd or generate 6.02% return on investment over 90 days.

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

Brenmiller Energy Ltd  vs.  Sirius XM Holdings

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 latest abnormal performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Sirius XM Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sirius XM Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Sirius is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Brenmiller Energy and Sirius

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

The idea behind Brenmiller Energy Ltd and Sirius XM Holdings 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.