Correlation Between BioNTech and QUEEN S

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

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

Diversification Opportunities for BioNTech and QUEEN S

0.1

Correlation Coefficient

BioNTech  QUEEN S

Average diversification

The 3 months correlation between BioNTech and QUEEN is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and QUEEN S ROAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUEEN S ROAD and BioNTech 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 BioNTech SE are associated (or correlated) with QUEEN S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUEEN S ROAD has no effect on the direction of BioNTech i.e., BioNTech and QUEEN S go up and down completely randomly.

Pair Corralation between BioNTech and QUEEN S

Assuming the 90 days trading horizon BioNTech is expected to generate 1.04 times less return on investment than QUEEN S. But when comparing it to its historical volatility, BioNTech SE is 1.47 times less risky than QUEEN S. It trades about 0.07 of its potential returns per unit of risk. QUEEN S ROAD is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  45.00  in QUEEN S ROAD on October 11, 2024 and sell it today you would earn a total of  3.00  from holding QUEEN S ROAD or generate 6.67% return on investment over 90 days.

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

BioNTech SE  vs.  QUEEN S ROAD

BioNTech SE

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, BioNTech exhibited solid returns over the last few months and may actually be approaching a breakup point.

QUEEN S ROAD

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in QUEEN S ROAD are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, QUEEN S reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioNTech and QUEEN S

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

The idea behind BioNTech SE and QUEEN S ROAD 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.