Correlation Between NIP Group and Brenmiller Energy

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

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

Diversification Opportunities for NIP Group and Brenmiller Energy

-0.1

Correlation Coefficient

NIP Group  Brenmiller Energy

Good diversification

The 3 months correlation between NIP and Brenmiller is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding NIP Group American and Brenmiller Energy Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brenmiller Energy and NIP Group 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 NIP Group American 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 NIP Group i.e., NIP Group and Brenmiller Energy go up and down completely randomly.

Pair Corralation between NIP Group and Brenmiller Energy

Given the investment horizon of 90 days NIP Group American is expected to under-perform the Brenmiller Energy. In addition to that, NIP Group is 1.03 times more volatile than Brenmiller Energy Ltd. It trades about -0.17 of its total potential returns per unit of risk. Brenmiller Energy Ltd is currently generating about 0.04 per unit of volatility. If you would invest  136.00  in Brenmiller Energy Ltd on December 4, 2024 and sell it today you would earn a total of  0.00  from holding Brenmiller Energy Ltd or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

NIP Group American  vs.  Brenmiller Energy Ltd

NIP Group American

Risk-Adjusted Performance

Very Weak

Over the last 90 days NIP Group American has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Brenmiller Energy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Brenmiller Energy Ltd are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Brenmiller Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NIP Group and Brenmiller Energy

The main advantage of trading using opposite NIP Group and Brenmiller Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIP Group 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 NIP Group American 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.