Correlation Between NIP Group and Brenmiller Energy
Can any of the company-specific risk be diversified away by investing in both NIP Group 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 NIP Group and Brenmiller Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIP Group American and Brenmiller Energy Ltd, you can compare the effects of market volatilities on NIP Group 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 NIP Group with a short position of Brenmiller Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIP Group and Brenmiller Energy.
Diversification Opportunities for NIP Group and Brenmiller Energy
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NIP and Brenmiller is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding NIP Group American and Brenmiller Energy Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brenmiller Energy and NIP Group 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 NIP Group American 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 NIP Group i.e., NIP Group and Brenmiller Energy go up and down completely randomly.
Pair Corralation between NIP Group and Brenmiller Energy
Given the investment horizon of 90 days NIP Group American is expected to generate 0.55 times more return on investment than Brenmiller Energy. However, NIP Group American is 1.83 times less risky than Brenmiller Energy. It trades about 0.39 of its potential returns per unit of risk. Brenmiller Energy Ltd is currently generating about 0.05 per unit of risk. If you would invest 585.00 in NIP Group American on September 15, 2024 and sell it today you would earn a total of 125.00 from holding NIP Group American or generate 21.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIP Group American vs. Brenmiller Energy Ltd
Performance |
| Timeline |
| NIP Group American |
| Brenmiller Energy |
NIP Group and Brenmiller Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIP Group and Brenmiller Energy
The main advantage of trading using opposite NIP Group and Brenmiller Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIP Group 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.| NIP Group vs. Mill City Ventures | NIP Group vs. Pintec Technology Holdings | NIP Group vs. Harmony Gold Mining | NIP Group vs. PennantPark Floating Rate |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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