Correlation Between Brenmiller Energy and Boeing

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

Diversification Opportunities for Brenmiller Energy and Boeing

0.3

Correlation Coefficient

Brenmiller Energy  Boeing

Weak diversification

The 3 months correlation between Brenmiller and Boeing is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Brenmiller Energy Ltd and Boeing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing 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 Boeing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boeing has no effect on the direction of Brenmiller Energy i.e., Brenmiller Energy and Boeing go up and down completely randomly.

Pair Corralation between Brenmiller Energy and Boeing

Given the investment horizon of 90 days Brenmiller Energy Ltd is expected to under-perform the Boeing. In addition to that, Brenmiller Energy is 3.77 times more volatile than Boeing Co. It trades about -0.1 of its total potential returns per unit of risk. Boeing Co is currently generating about 0.58 per unit of volatility. If you would invest  5,450  in Boeing Co on September 24, 2024 and sell it today you would earn a total of  715.00  from holding Boeing Co or generate 13.12% return on investment over 90 days.

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

Brenmiller Energy Ltd  vs.  Boeing Co

Brenmiller Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brenmiller Energy Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Boeing

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Boeing Co are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Boeing sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Brenmiller Energy and Boeing

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

The idea behind Brenmiller Energy Ltd and Boeing Co 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.