Correlation Between Brenmiller Energy and Astra Energy
Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and Astra 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 Brenmiller Energy and Astra Energy 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 Astra Energy, you can compare the effects of market volatilities on Brenmiller Energy and Astra 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 Brenmiller Energy with a short position of Astra Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and Astra Energy.
Diversification Opportunities for Brenmiller Energy and Astra Energy
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Brenmiller and Astra is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and Astra Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Energy 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 Astra Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Energy has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and Astra Energy go up and down completely randomly.
Pair Corralation between Brenmiller Energy and Astra Energy
Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to under-perform the Astra Energy. But the stock apears to be less risky and, when comparing its historical volatility, Brenmiller Energy Ltd is 1.2 times less risky than Astra Energy. The stock trades about -0.03 of its potential returns per unit of risk. The Astra Energy is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Astra Energy on August 28, 2024 and sell it today you would lose (15.00) from holding Astra Energy or give up 57.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brenmiller Energy Ltd vs. Astra Energy
Performance |
| Timeline |
| Brenmiller Energy |
| Astra Energy |
Brenmiller Energy and Astra Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brenmiller Energy and Astra Energy
The main advantage of trading using opposite Brenmiller Energy and Astra Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brenmiller Energy position performs unexpectedly, Astra 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 Astra Energy will offset losses from the drop in Astra Energy's long position.| Brenmiller Energy vs. Fusion Fuel Green | Brenmiller Energy vs. Advent Technologies Holdings | Brenmiller Energy vs. Eos Energy Enterprises | Brenmiller Energy vs. CuriosityStream |
| Astra Energy vs. Alternus Energy Group | Astra Energy vs. American Security Resources | Astra Energy vs. Carnegie Clean Energy | Astra Energy vs. Altius Renewable Royalties |
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 Stocks Directory module to find actively traded stocks across global markets.
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