Correlation Between Brenmiller Energy and Rivian Automotive
Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and Rivian Automotive 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 Rivian Automotive 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 Rivian Automotive, you can compare the effects of market volatilities on Brenmiller Energy and Rivian Automotive 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 Rivian Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and Rivian Automotive.
Diversification Opportunities for Brenmiller Energy and Rivian Automotive
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brenmiller and Rivian is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and Rivian Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rivian Automotive 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 Rivian Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rivian Automotive has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and Rivian Automotive go up and down completely randomly.
Pair Corralation between Brenmiller Energy and Rivian Automotive
Given the investment horizon of 90 days Brenmiller Energy is expected to generate 10.82 times less return on investment than Rivian Automotive. But when comparing it to its historical volatility, Brenmiller Energy Ltd is 1.27 times less risky than Rivian Automotive. It trades about 0.02 of its potential returns per unit of risk. Rivian Automotive is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,203 in Rivian Automotive on September 14, 2024 and sell it today you would earn a total of 217.00 from holding Rivian Automotive or generate 18.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brenmiller Energy Ltd vs. Rivian Automotive
Performance |
| Timeline |
| Brenmiller Energy |
| Rivian Automotive |
Brenmiller Energy and Rivian Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brenmiller Energy and Rivian Automotive
The main advantage of trading using opposite Brenmiller Energy and Rivian Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brenmiller Energy position performs unexpectedly, Rivian Automotive 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 Rivian Automotive will offset losses from the drop in Rivian Automotive's long position.| Brenmiller Energy vs. Fusion Fuel Green | Brenmiller Energy vs. Fluence Energy | Brenmiller Energy vs. Altus Power | Brenmiller Energy vs. Energy Vault Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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