Correlation Between Brenmiller Energy and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and Carnegie Clean 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 Carnegie Clean 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 Carnegie Clean Energy, you can compare the effects of market volatilities on Brenmiller Energy and Carnegie Clean 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 Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and Carnegie Clean.
Diversification Opportunities for Brenmiller Energy and Carnegie Clean
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brenmiller and Carnegie is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and Carnegie Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Clean 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 Carnegie Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Clean Energy has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and Carnegie Clean go up and down completely randomly.
Pair Corralation between Brenmiller Energy and Carnegie Clean
Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to under-perform the Carnegie Clean. But the stock apears to be less risky and, when comparing its historical volatility, Brenmiller Energy Ltd is 2.07 times less risky than Carnegie Clean. The stock trades about 0.0 of its potential returns per unit of risk. The Carnegie Clean Energy is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2.30 in Carnegie Clean Energy on November 4, 2024 and sell it today you would lose (0.30) from holding Carnegie Clean Energy or give up 13.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brenmiller Energy Ltd vs. Carnegie Clean Energy
Performance |
| Timeline |
| Brenmiller Energy |
| Carnegie Clean Energy |
Brenmiller Energy and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brenmiller Energy and Carnegie Clean
The main advantage of trading using opposite Brenmiller Energy and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brenmiller Energy position performs unexpectedly, Carnegie Clean 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 Carnegie Clean will offset losses from the drop in Carnegie Clean's long position.| Brenmiller Energy vs. Verde Clean Fuels | Brenmiller Energy vs. Smart Powerr Corp | Brenmiller Energy vs. Ormat Technologies | Brenmiller Energy vs. Verde Clean Fuels |
| Carnegie Clean vs. Astra Energy | Carnegie Clean vs. Brenmiller Energy Ltd | Carnegie Clean vs. Clean Vision Corp | Carnegie Clean vs. Alternus Energy Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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