Correlation Between Brenmiller Energy and Bukit Asam
Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and Bukit Asam 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 Bukit Asam 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 Bukit Asam Tbk, you can compare the effects of market volatilities on Brenmiller Energy and Bukit Asam 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 Bukit Asam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and Bukit Asam.
Diversification Opportunities for Brenmiller Energy and Bukit Asam
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brenmiller and Bukit is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and Bukit Asam Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Asam Tbk 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 Bukit Asam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Asam Tbk has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and Bukit Asam go up and down completely randomly.
Pair Corralation between Brenmiller Energy and Bukit Asam
Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to under-perform the Bukit Asam. But the stock apears to be less risky and, when comparing its historical volatility, Brenmiller Energy Ltd is 2.46 times less risky than Bukit Asam. The stock trades about -0.03 of its potential returns per unit of risk. The Bukit Asam Tbk is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 595.00 in Bukit Asam Tbk on September 12, 2024 and sell it today you would lose (179.00) from holding Bukit Asam Tbk or give up 30.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.36% |
| Values | Daily Returns |
Brenmiller Energy Ltd vs. Bukit Asam Tbk
Performance |
| Timeline |
| Brenmiller Energy |
| Bukit Asam Tbk |
Brenmiller Energy and Bukit Asam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brenmiller Energy and Bukit Asam
The main advantage of trading using opposite Brenmiller Energy and Bukit Asam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brenmiller Energy position performs unexpectedly, Bukit Asam 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 Bukit Asam will offset losses from the drop in Bukit Asam'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 |
| Bukit Asam vs. The Cheesecake Factory | Bukit Asam vs. Brenmiller Energy Ltd | Bukit Asam vs. Ark Restaurants Corp | Bukit Asam vs. Kura Sushi USA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |