Correlation Between Modine Manufacturing and Brenmiller Energy
Can any of the company-specific risk be diversified away by investing in both Modine Manufacturing 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 Modine Manufacturing and Brenmiller Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Modine Manufacturing and Brenmiller Energy Ltd, you can compare the effects of market volatilities on Modine Manufacturing 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 Modine Manufacturing with a short position of Brenmiller Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Modine Manufacturing and Brenmiller Energy.
Diversification Opportunities for Modine Manufacturing and Brenmiller Energy
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Modine and Brenmiller is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Modine Manufacturing and Brenmiller Energy Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brenmiller Energy and Modine Manufacturing 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 Modine Manufacturing 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 Modine Manufacturing i.e., Modine Manufacturing and Brenmiller Energy go up and down completely randomly.
Pair Corralation between Modine Manufacturing and Brenmiller Energy
Considering the 90-day investment horizon Modine Manufacturing is expected to generate 0.81 times more return on investment than Brenmiller Energy. However, Modine Manufacturing is 1.23 times less risky than Brenmiller Energy. It trades about 0.03 of its potential returns per unit of risk. Brenmiller Energy Ltd is currently generating about 0.02 per unit of risk. If you would invest 12,729 in Modine Manufacturing on September 14, 2024 and sell it today you would earn a total of 93.00 from holding Modine Manufacturing or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Modine Manufacturing vs. Brenmiller Energy Ltd
Performance |
| Timeline |
| Modine Manufacturing |
| Brenmiller Energy |
Modine Manufacturing and Brenmiller Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Modine Manufacturing and Brenmiller Energy
The main advantage of trading using opposite Modine Manufacturing and Brenmiller Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modine Manufacturing 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.| Modine Manufacturing vs. Ford Motor | Modine Manufacturing vs. General Motors | Modine Manufacturing vs. Goodyear Tire Rubber | Modine Manufacturing vs. Li Auto |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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