Correlation Between BioNTech and X FAB
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By analyzing existing cross correlation between BioNTech SE and X FAB Silicon Foundries, you can compare the effects of market volatilities on BioNTech and X FAB 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 X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and X FAB.
Diversification Opportunities for BioNTech and X FAB
Poor diversification
The 3 months correlation between BioNTech and XFB is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and X FAB Silicon Foundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X FAB Silicon 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 X FAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X FAB Silicon has no effect on the direction of BioNTech i.e., BioNTech and X FAB go up and down completely randomly.
Pair Corralation between BioNTech and X FAB
Assuming the 90 days trading horizon BioNTech SE is expected to under-perform the X FAB. But the stock apears to be less risky and, when comparing its historical volatility, BioNTech SE is 1.14 times less risky than X FAB. The stock trades about -0.13 of its potential returns per unit of risk. The X FAB Silicon Foundries is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 501.00 in X FAB Silicon Foundries on December 25, 2024 and sell it today you would lose (78.00) from holding X FAB Silicon Foundries or give up 15.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
BioNTech SE vs. X FAB Silicon Foundries
Performance |
Timeline |
BioNTech SE |
X FAB Silicon |
BioNTech and X FAB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BioNTech and X FAB
The main advantage of trading using opposite BioNTech and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, X FAB 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 X FAB will offset losses from the drop in X FAB's long position.BioNTech vs. Kingdee International Software | BioNTech vs. KIMBALL ELECTRONICS | BioNTech vs. Microchip Technology Incorporated | BioNTech vs. Vishay Intertechnology |
X FAB vs. Charter Communications | X FAB vs. SBA Communications Corp | X FAB vs. Singapore Telecommunications Limited | X FAB vs. Media and Games |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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