Correlation Between Brenmiller Energy and SolarWindow Technologies
Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and SolarWindow Technologies 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 SolarWindow Technologies 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 SolarWindow Technologies, you can compare the effects of market volatilities on Brenmiller Energy and SolarWindow Technologies 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 SolarWindow Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and SolarWindow Technologies.
Diversification Opportunities for Brenmiller Energy and SolarWindow Technologies
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brenmiller and SolarWindow is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and SolarWindow Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolarWindow Technologies 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 SolarWindow Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolarWindow Technologies has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and SolarWindow Technologies go up and down completely randomly.
Pair Corralation between Brenmiller Energy and SolarWindow Technologies
Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to generate 0.41 times more return on investment than SolarWindow Technologies. However, Brenmiller Energy Ltd is 2.43 times less risky than SolarWindow Technologies. It trades about -0.11 of its potential returns per unit of risk. SolarWindow Technologies is currently generating about -0.14 per unit of risk. If you would invest 84.00 in Brenmiller Energy Ltd on August 31, 2024 and sell it today you would lose (8.50) from holding Brenmiller Energy Ltd or give up 10.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Brenmiller Energy Ltd vs. SolarWindow Technologies
Performance |
| Timeline |
| Brenmiller Energy |
| SolarWindow Technologies |
Brenmiller Energy and SolarWindow Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brenmiller Energy and SolarWindow Technologies
The main advantage of trading using opposite Brenmiller Energy and SolarWindow Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brenmiller Energy position performs unexpectedly, SolarWindow Technologies 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 SolarWindow Technologies will offset losses from the drop in SolarWindow Technologies' 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 |
| SolarWindow Technologies vs. Triad Pro Innovators | SolarWindow Technologies vs. Fortum Oyj ADR | SolarWindow Technologies vs. Fusion Fuel Green | SolarWindow Technologies vs. Clearway Energy Class |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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