Correlation Between Brenmiller Energy and Vision Energy
Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and Vision Energy 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 Vision Energy 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 Vision Energy Corp, you can compare the effects of market volatilities on Brenmiller Energy and Vision Energy 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 Vision Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and Vision Energy.
Diversification Opportunities for Brenmiller Energy and Vision Energy
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brenmiller and Vision is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and Vision Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vision Energy Corp 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 Vision Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vision Energy Corp has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and Vision Energy go up and down completely randomly.
Pair Corralation between Brenmiller Energy and Vision Energy
Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to under-perform the Vision Energy. But the stock apears to be less risky and, when comparing its historical volatility, Brenmiller Energy Ltd is 25.37 times less risky than Vision Energy. The stock trades about -0.04 of its potential returns per unit of risk. The Vision Energy Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.25 in Vision Energy Corp on August 27, 2024 and sell it today you would lose (0.24) from holding Vision Energy Corp or give up 96.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brenmiller Energy Ltd vs. Vision Energy Corp
Performance |
| Timeline |
| Brenmiller Energy |
| Vision Energy Corp |
Brenmiller Energy and Vision Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brenmiller Energy and Vision Energy
The main advantage of trading using opposite Brenmiller Energy and Vision Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brenmiller Energy position performs unexpectedly, Vision Energy 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 Vision Energy will offset losses from the drop in Vision Energy's long position.| Brenmiller Energy vs. Fusion Fuel Green | Brenmiller Energy vs. Advent Technologies Holdings | Brenmiller Energy vs. Eos Energy Enterprises | Brenmiller Energy vs. CuriosityStream |
| Vision Energy vs. Advent Technologies Holdings | Vision Energy vs. Fusion Fuel Green | Vision Energy vs. Fluence Energy | Vision Energy vs. Astra 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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