Correlation Between Brenmiller Energy and CEZ A

Can any of the company-specific risk be diversified away by investing in both Brenmiller Energy and CEZ A 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 CEZ A 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 CEZ A S, you can compare the effects of market volatilities on Brenmiller Energy and CEZ A 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 CEZ A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brenmiller Energy and CEZ A.

Diversification Opportunities for Brenmiller Energy and CEZ A

0.0

Correlation Coefficient

Brenmiller Energy  CEZ A

Pay attention - limited upside

The 3 months correlation between Brenmiller and CEZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and CEZ A S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEZ A S 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 CEZ A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEZ A S has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and CEZ A go up and down completely randomly.

Pair Corralation between Brenmiller Energy and CEZ A

If you would invest  157.00  in Brenmiller Energy Ltd on December 2, 2024 and sell it today you would lose (13.00) from holding Brenmiller Energy Ltd or give up 8.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Brenmiller Energy Ltd  vs.  CEZ A S

Brenmiller Energy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Brenmiller Energy Ltd are ranked lower than 10 (%) 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.

CEZ A S

Risk-Adjusted Performance

Very Weak

Over the last 90 days CEZ A S has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, CEZ A 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 CEZ A

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

The idea behind Brenmiller Energy Ltd and CEZ A S 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.