Correlation Between Brenmiller Energy and BioNTech

Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and BioNTech 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 Brenmiller Energy and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brenmiller Energy Ltd and BioNTech SE, you can compare the effects of market volatilities on Brenmiller Energy and BioNTech 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 Brenmiller Energy with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and BioNTech.

Diversification Opportunities for Brenmiller Energy and BioNTech

0.39

Correlation Coefficient

Brenmiller Energy  BioNTech

Weak diversification

The 3 months correlation between Brenmiller and BioNTech is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Brenmiller Energy 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 Brenmiller Energy Ltd are associated (or correlated) with BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and BioNTech go up and down completely randomly.

Pair Corralation between Brenmiller Energy and BioNTech

Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to generate 4.02 times more return on investment than BioNTech. However, Brenmiller Energy is 4.02 times more volatile than BioNTech SE. It trades about 0.0 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.0 per unit of risk. If you would invest  1,830  in Brenmiller Energy Ltd on October 14, 2024 and sell it today you would lose (1,530) from holding Brenmiller Energy Ltd or give up 83.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Brenmiller Energy Ltd  vs.  BioNTech SE

Brenmiller Energy

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Brenmiller Energy Ltd are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Brenmiller Energy reported solid returns over the last few months and may actually be approaching a breakup point.

BioNTech SE

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, BioNTech is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Brenmiller Energy and BioNTech

The main advantage of trading using opposite Brenmiller Energy and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brenmiller Energy position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech's long position.

The idea behind Brenmiller Energy Ltd and BioNTech SE 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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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 Directory module to find actively traded commodities issued by global exchanges.