Correlation Between BioNTech and Amkor Technology

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

By analyzing existing cross correlation between BioNTech SE and Amkor Technology, you can compare the effects of market volatilities on BioNTech and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Amkor Technology.

Diversification Opportunities for BioNTech and Amkor Technology

-0.02

Correlation Coefficient

BioNTech  Amkor Technology

Good diversification

The 3 months correlation between BioNTech and Amkor is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of BioNTech i.e., BioNTech and Amkor Technology go up and down completely randomly.

Pair Corralation between BioNTech and Amkor Technology

Assuming the 90 days trading horizon BioNTech SE is expected to generate 1.37 times more return on investment than Amkor Technology. However, BioNTech is 1.37 times more volatile than Amkor Technology. It trades about 0.06 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.02 per unit of risk. If you would invest  10,210  in BioNTech SE on October 25, 2024 and sell it today you would earn a total of  790.00  from holding BioNTech SE or generate 7.74% return on investment over 90 days.

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

BioNTech SE  vs.  Amkor Technology

BioNTech SE

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, BioNTech may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Amkor Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Amkor Technology is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BioNTech and Amkor Technology

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

The idea behind BioNTech SE and Amkor Technology 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..