Correlation Between Apple and Brenmiller Energy

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Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and Brenmiller Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Brenmiller Energy, you can compare the effects of market volatilities on Apple 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 Apple with a short position of Brenmiller Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Brenmiller Energy.

Diversification Opportunities for Apple and Brenmiller Energy

0.23
  Correlation Coefficient

Modest diversification

The 3 months correlation between Apple and Brenmiller is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Brenmiller Energy Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brenmiller Energy and Apple 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 Apple Inc 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 Apple i.e., Apple and Brenmiller Energy go up and down completely randomly.

Pair Corralation between Apple and Brenmiller Energy

Given the investment horizon of 90 days Apple is expected to generate 157.86 times less return on investment than Brenmiller Energy. But when comparing it to its historical volatility, Apple Inc is 43.9 times less risky than Brenmiller Energy. It trades about 0.02 of its potential returns per unit of risk. Brenmiller Energy is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Brenmiller Energy on September 10, 2022 and sell it today you would earn a total of  162.00  from holding Brenmiller Energy or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy27.97%
ValuesDaily Returns

Apple Inc  vs.  Brenmiller Energy Ltd

 Performance (%) 
       Timeline  
Apple Inc 
Apple Performance
0 of 100
Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest sluggish performance, the Stock's basic indicators remain steady and the new chaos on Wall Street may also be a sign of medium-term gains for the company stakeholders.

Apple Price Channel

Brenmiller Energy 
Brenmiller Performance
0 of 100
Over the last 90 days Brenmiller Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2023. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Brenmiller Price Channel

Apple and Brenmiller Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apple and Brenmiller Energy

The main advantage of trading using opposite Apple and Brenmiller Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.
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The idea behind Apple Inc and Brenmiller Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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