Correlation Between Brenmiller Energy and Modine Manufacturing
Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and Modine Manufacturing 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 Modine Manufacturing 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 Modine Manufacturing, you can compare the effects of market volatilities on Brenmiller Energy and Modine Manufacturing 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 Modine Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and Modine Manufacturing.
Diversification Opportunities for Brenmiller Energy and Modine Manufacturing
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brenmiller and Modine is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and Modine Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modine Manufacturing 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 Modine Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modine Manufacturing has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and Modine Manufacturing go up and down completely randomly.
Pair Corralation between Brenmiller Energy and Modine Manufacturing
Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to generate 7.02 times more return on investment than Modine Manufacturing. However, Brenmiller Energy is 7.02 times more volatile than Modine Manufacturing. It trades about 0.4 of its potential returns per unit of risk. Modine Manufacturing is currently generating about 0.29 per unit of risk. If you would invest 69.00 in Brenmiller Energy Ltd on October 20, 2024 and sell it today you would earn a total of 111.00 from holding Brenmiller Energy Ltd or generate 160.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brenmiller Energy Ltd vs. Modine Manufacturing
Performance |
| Timeline |
| Brenmiller Energy |
| Modine Manufacturing |
Brenmiller Energy and Modine Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brenmiller Energy and Modine Manufacturing
The main advantage of trading using opposite Brenmiller Energy and Modine Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brenmiller Energy position performs unexpectedly, Modine Manufacturing 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 Modine Manufacturing will offset losses from the drop in Modine Manufacturing's long position.| Brenmiller Energy vs. Verde Clean Fuels | Brenmiller Energy vs. Smart Powerr Corp | Brenmiller Energy vs. Ormat Technologies | Brenmiller Energy vs. Tokyo Electric Power |
| Modine Manufacturing vs. Cooper Stnd | Modine Manufacturing vs. Motorcar Parts of | Modine Manufacturing vs. American Axle Manufacturing | Modine Manufacturing vs. Stoneridge |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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