Correlation Between NYSE Composite and Brenmiller Energy
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Brenmiller Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Brenmiller Energy Ltd, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Brenmiller Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Brenmiller Energy.
Diversification Opportunities for NYSE Composite and Brenmiller Energy
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Brenmiller is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Brenmiller Energy Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brenmiller Energy and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Brenmiller Energy go up and down completely randomly.
Pair Corralation between NYSE Composite and Brenmiller Energy
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.06 times more return on investment than Brenmiller Energy. However, NYSE Composite is 16.45 times less risky than Brenmiller Energy. It trades about 0.14 of its potential returns per unit of risk. Brenmiller Energy Ltd is currently generating about -0.04 per unit of risk. If you would invest 1,613,685 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 413,519 from holding NYSE Composite or generate 25.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Brenmiller Energy Ltd
Performance |
| Timeline |
NYSE Composite and Brenmiller Energy Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Brenmiller Energy Ltd
Pair trading matchups for Brenmiller Energy
Pair Trading with NYSE Composite and Brenmiller Energy
The main advantage of trading using opposite NYSE Composite and Brenmiller Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Brenmiller Energy vs. Verde Clean Fuels | Brenmiller Energy vs. Smart Powerr Corp | Brenmiller Energy vs. Ormat Technologies | Brenmiller Energy vs. Tokyo Electric Power |
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.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |