Correlation Between UGE International and Brenmiller Energy
Can any of the company-specific risk be diversified away by investing in both UGE International 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 UGE International and Brenmiller Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UGE International and Brenmiller Energy Ltd, you can compare the effects of market volatilities on UGE International 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 UGE International with a short position of Brenmiller Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of UGE International and Brenmiller Energy.
Diversification Opportunities for UGE International and Brenmiller Energy
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between UGE and Brenmiller is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding UGE International and Brenmiller Energy Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brenmiller Energy and UGE International 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 UGE International 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 UGE International i.e., UGE International and Brenmiller Energy go up and down completely randomly.
Pair Corralation between UGE International and Brenmiller Energy
If you would invest 63.00 in Brenmiller Energy Ltd on August 28, 2024 and sell it today you would earn a total of 20.00 from holding Brenmiller Energy Ltd or generate 31.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
UGE International vs. Brenmiller Energy Ltd
Performance |
| Timeline |
| UGE International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Brenmiller Energy |
UGE International and Brenmiller Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UGE International and Brenmiller Energy
The main advantage of trading using opposite UGE International and Brenmiller Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UGE International 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.| UGE International vs. Fortum Oyj ADR | UGE International vs. Astra Energy | UGE International vs. Powertap Hydrogen Capital | UGE International vs. Brenmiller Energy Ltd |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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