Correlation Between BioNTech and Dollar Tree
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By analyzing existing cross correlation between BioNTech SE and Dollar Tree, you can compare the effects of market volatilities on BioNTech and Dollar Tree 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 Dollar Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Dollar Tree.
Diversification Opportunities for BioNTech and Dollar Tree
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BioNTech and Dollar is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Dollar Tree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollar Tree 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 Dollar Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar Tree has no effect on the direction of BioNTech i.e., BioNTech and Dollar Tree go up and down completely randomly.
Pair Corralation between BioNTech and Dollar Tree
Assuming the 90 days trading horizon BioNTech is expected to generate 1.37 times less return on investment than Dollar Tree. In addition to that, BioNTech is 1.11 times more volatile than Dollar Tree. It trades about 0.06 of its total potential returns per unit of risk. Dollar Tree is currently generating about 0.09 per unit of volatility. If you would invest 6,119 in Dollar Tree on October 21, 2024 and sell it today you would earn a total of 851.00 from holding Dollar Tree or generate 13.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
BioNTech SE vs. Dollar Tree
Performance |
Timeline |
BioNTech SE |
Dollar Tree |
BioNTech and Dollar Tree Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BioNTech and Dollar Tree
The main advantage of trading using opposite BioNTech and Dollar Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Dollar Tree 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 Dollar Tree will offset losses from the drop in Dollar Tree's long position.BioNTech vs. NURAN WIRELESS INC | ||
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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