Correlation Between Orsted A/S and Brenmiller Energy
Can any of the company-specific risk be diversified away by investing in both Orsted A/S and Brenmiller 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 Orsted A/S and Brenmiller Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orsted AS ADR and Brenmiller Energy Ltd, you can compare the effects of market volatilities on Orsted A/S and Brenmiller 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 Orsted A/S with a short position of Brenmiller Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orsted A/S and Brenmiller Energy.
Diversification Opportunities for Orsted A/S and Brenmiller Energy
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Orsted and Brenmiller is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Orsted AS ADR and Brenmiller Energy Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brenmiller Energy and Orsted A/S 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 Orsted AS ADR are associated (or correlated) with Brenmiller Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brenmiller Energy has no effect on the direction of Orsted A/S i.e., Orsted A/S and Brenmiller Energy go up and down completely randomly.
Pair Corralation between Orsted A/S and Brenmiller Energy
Assuming the 90 days horizon Orsted AS ADR is expected to under-perform the Brenmiller Energy. But the pink sheet apears to be less risky and, when comparing its historical volatility, Orsted AS ADR is 1.02 times less risky than Brenmiller Energy. The pink sheet trades about -0.18 of its potential returns per unit of risk. The Brenmiller Energy Ltd is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 87.00 in Brenmiller Energy Ltd on August 28, 2024 and sell it today you would lose (4.00) from holding Brenmiller Energy Ltd or give up 4.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orsted AS ADR vs. Brenmiller Energy Ltd
Performance |
| Timeline |
| Orsted AS ADR |
| Brenmiller Energy |
Orsted A/S and Brenmiller Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orsted A/S and Brenmiller Energy
The main advantage of trading using opposite Orsted A/S and Brenmiller Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orsted A/S position performs unexpectedly, Brenmiller 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 Brenmiller Energy will offset losses from the drop in Brenmiller Energy's long position.| Orsted A/S vs. Brookfield Renewable Partners | Orsted A/S vs. Brookfield Renewable Corp | Orsted A/S vs. Clearway Energy Class | Orsted A/S vs. Atlantica Sustainable Infrastructure |
| Brenmiller Energy vs. Fusion Fuel Green | Brenmiller Energy vs. Advent Technologies Holdings | Brenmiller Energy vs. Eos Energy Enterprises | Brenmiller Energy vs. CuriosityStream |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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