Correlation Between Mill City and Brenmiller Energy

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Can any of the company-specific risk be diversified away by investing in both Mill City and Brenmiller 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 Mill City and Brenmiller Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mill City Ventures and Brenmiller Energy Ltd, you can compare the effects of market volatilities on Mill City and Brenmiller 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 Mill City with a short position of Brenmiller Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mill City and Brenmiller Energy.

Diversification Opportunities for Mill City and Brenmiller Energy

0.81
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Mill and Brenmiller is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mill City Ventures and Brenmiller Energy Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brenmiller Energy and Mill City 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 Mill City Ventures are associated (or correlated) with Brenmiller Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brenmiller Energy has no effect on the direction of Mill City i.e., Mill City and Brenmiller Energy go up and down completely randomly.

Pair Corralation between Mill City and Brenmiller Energy

Given the investment horizon of 90 days Mill City Ventures is expected to under-perform the Brenmiller Energy. In addition to that, Mill City is 1.07 times more volatile than Brenmiller Energy Ltd. It trades about -0.18 of its total potential returns per unit of risk. Brenmiller Energy Ltd is currently generating about -0.1 per unit of volatility. If you would invest  99.00  in Brenmiller Energy Ltd on September 18, 2024 and sell it today you would lose (27.00) from holding Brenmiller Energy Ltd or give up 27.27% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Mill City Ventures  vs.  Brenmiller Energy Ltd

 Performance 
       Timeline  
Mill City Ventures 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Mill City Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
Brenmiller Energy 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 abnormal 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.

Mill City and Brenmiller Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mill City and Brenmiller Energy

The main advantage of trading using opposite Mill City and Brenmiller Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mill City position performs unexpectedly, Brenmiller 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 Brenmiller Energy will offset losses from the drop in Brenmiller Energy's long position.
The idea behind Mill City Ventures and Brenmiller Energy Ltd 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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