Correlation Between Altus Power and Brenmiller Energy
Can any of the company-specific risk be diversified away by investing in both Altus Power 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 Altus Power and Brenmiller Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altus Power and Brenmiller Energy Ltd, you can compare the effects of market volatilities on Altus Power 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 Altus Power with a short position of Brenmiller Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altus Power and Brenmiller Energy.
Diversification Opportunities for Altus Power and Brenmiller Energy
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altus and Brenmiller is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Altus Power and Brenmiller Energy Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brenmiller Energy and Altus Power 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 Altus Power 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 Altus Power i.e., Altus Power and Brenmiller Energy go up and down completely randomly.
Pair Corralation between Altus Power and Brenmiller Energy
Given the investment horizon of 90 days Altus Power is expected to under-perform the Brenmiller Energy. But the etf apears to be less risky and, when comparing its historical volatility, Altus Power is 1.33 times less risky than Brenmiller Energy. The etf trades about -0.06 of its potential returns per unit of risk. The Brenmiller Energy Ltd is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 74.00 in Brenmiller Energy Ltd on September 14, 2024 and sell it today you would lose (2.39) from holding Brenmiller Energy Ltd or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altus Power vs. Brenmiller Energy Ltd
Performance |
| Timeline |
| Altus Power |
| Brenmiller Energy |
Altus Power and Brenmiller Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altus Power and Brenmiller Energy
The main advantage of trading using opposite Altus Power and Brenmiller Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altus Power 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.| Altus Power vs. Ormat Technologies | Altus Power vs. Enlight Renewable Energy | Altus Power vs. Fluence Energy | Altus Power vs. Renew Energy Global |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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