Correlation Between Brainstorm Cell and Biofrontera

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

By analyzing existing cross correlation between Brainstorm Cell Therapeutics and Biofrontera, you can compare the effects of market volatilities on Brainstorm Cell and Biofrontera 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 Brainstorm Cell with a short position of Biofrontera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brainstorm Cell and Biofrontera.

Diversification Opportunities for Brainstorm Cell and Biofrontera

-0.08

Correlation Coefficient

Brainstorm Cell  Biofrontera

Good diversification

The 3 months correlation between Brainstorm and Biofrontera is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Brainstorm Cell Therapeutics and Biofrontera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biofrontera and Brainstorm Cell 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 Brainstorm Cell Therapeutics are associated (or correlated) with Biofrontera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biofrontera has no effect on the direction of Brainstorm Cell i.e., Brainstorm Cell and Biofrontera go up and down completely randomly.

Pair Corralation between Brainstorm Cell and Biofrontera

Given the investment horizon of 90 days Brainstorm Cell is expected to generate 4.08 times less return on investment than Biofrontera. In addition to that, Brainstorm Cell is 1.16 times more volatile than Biofrontera. It trades about 0.01 of its total potential returns per unit of risk. Biofrontera is currently generating about 0.04 per unit of volatility. If you would invest  105.00  in Biofrontera on July 29, 2025 and sell it today you would earn a total of  5.00  from holding Biofrontera or generate 4.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Brainstorm Cell Therapeutics  vs.  Biofrontera

Brainstorm Cell Ther

Risk-Adjusted Performance

Weakest

Over the last 90 days Brainstorm Cell Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong essential indicators, Brainstorm Cell is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Biofrontera

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Biofrontera are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Biofrontera may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Brainstorm Cell and Biofrontera

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

The idea behind Brainstorm Cell Therapeutics and Biofrontera 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.