Correlation Between Brenmiller Energy and Kansai Electric
Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and Kansai Electric 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 Kansai Electric 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 Kansai Electric Power, you can compare the effects of market volatilities on Brenmiller Energy and Kansai Electric 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 Kansai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and Kansai Electric.
Diversification Opportunities for Brenmiller Energy and Kansai Electric
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brenmiller and Kansai is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and Kansai Electric Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kansai Electric Power 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 Kansai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kansai Electric Power has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and Kansai Electric go up and down completely randomly.
Pair Corralation between Brenmiller Energy and Kansai Electric
Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to under-perform the Kansai Electric. In addition to that, Brenmiller Energy is 2.39 times more volatile than Kansai Electric Power. It trades about 0.0 of its total potential returns per unit of risk. Kansai Electric Power is currently generating about 0.12 per unit of volatility. If you would invest 520.00 in Kansai Electric Power on November 4, 2024 and sell it today you would earn a total of 62.00 from holding Kansai Electric Power or generate 11.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brenmiller Energy Ltd vs. Kansai Electric Power
Performance |
| Timeline |
| Brenmiller Energy |
| Kansai Electric Power |
Brenmiller Energy and Kansai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brenmiller Energy and Kansai Electric
The main advantage of trading using opposite Brenmiller Energy and Kansai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brenmiller Energy position performs unexpectedly, Kansai Electric 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 Kansai Electric will offset losses from the drop in Kansai Electric'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 |
| Kansai Electric vs. Wind Works Power | Kansai Electric vs. Alternus Energy Group | Kansai Electric vs. Mass Megawat Wind | Kansai Electric vs. Enlight Renewable Energy |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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