Correlation Between Brooge Energy and Excelerate Energy

Can any of the company-specific risk be diversified away by investing in both Brooge Energy and Excelerate Energy 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 Brooge Energy and Excelerate Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brooge Energy Limited and Excelerate Energy, you can compare the effects of market volatilities on Brooge Energy and Excelerate Energy 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 Brooge Energy with a short position of Excelerate Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brooge Energy and Excelerate Energy.

Diversification Opportunities for Brooge Energy and Excelerate Energy

0.0

Correlation Coefficient

Brooge Energy  Excelerate Energy

Pay attention - limited upside

The 3 months correlation between Brooge and Excelerate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Brooge Energy Limited and Excelerate Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelerate Energy and Brooge 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 Brooge Energy Limited are associated (or correlated) with Excelerate Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelerate Energy has no effect on the direction of Brooge Energy i.e., Brooge Energy and Excelerate Energy go up and down completely randomly.

Pair Corralation between Brooge Energy and Excelerate Energy

If you would invest (100.00) in Brooge Energy Limited on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Brooge Energy Limited or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Brooge Energy Limited  vs.  Excelerate Energy

Brooge Energy Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brooge Energy Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Brooge Energy is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Excelerate Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Excelerate Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Excelerate Energy is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Brooge Energy and Excelerate Energy

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

The idea behind Brooge Energy Limited and Excelerate Energy 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.