Correlation Between Brenmiller Energy and National CineMedia

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

Diversification Opportunities for Brenmiller Energy and National CineMedia

BrenmillerNationalDiversified AwayBrenmillerNationalDiversified Away100%
-0.26
  Correlation Coefficient

Very good diversification

The 3 months correlation between Brenmiller and National is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia 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 National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and National CineMedia go up and down completely randomly.

Pair Corralation between Brenmiller Energy and National CineMedia

Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to generate 2.93 times more return on investment than National CineMedia. However, Brenmiller Energy is 2.93 times more volatile than National CineMedia. It trades about 0.21 of its potential returns per unit of risk. National CineMedia is currently generating about 0.04 per unit of risk. If you would invest  80.00  in Brenmiller Energy Ltd on October 6, 2024 and sell it today you would earn a total of  86.00  from holding Brenmiller Energy Ltd or generate 107.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Brenmiller Energy Ltd  vs.  National CineMedia

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -60-50-40-30-20-10010
JavaScript chart by amCharts 3.21.15BNRG NCMI
       Timeline  
Brenmiller Energy 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Brenmiller Energy Ltd are ranked lower than 16 (%) 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan11.522.5
National CineMedia 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in National CineMedia are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong primary indicators, National CineMedia is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan6.26.46.66.877.27.47.6

Brenmiller Energy and National CineMedia Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-20.47-15.33-10.19-5.050.015.5111.216.922.5928.29 0.010.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15BNRG NCMI
       Returns  

Pair Trading with Brenmiller Energy and National CineMedia

The main advantage of trading using opposite Brenmiller Energy and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brenmiller Energy position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia's long position.
The idea behind Brenmiller Energy Ltd and National CineMedia 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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