Correlation Between Eastinco Mining and BioNTech

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

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

Diversification Opportunities for Eastinco Mining and BioNTech

0.61

Correlation Coefficient

Eastinco Mining  BioNTech

Poor diversification

The 3 months correlation between Eastinco and BioNTech is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Eastinco Mining 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 Eastinco Mining Exploration are associated (or correlated) with BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of Eastinco Mining i.e., Eastinco Mining and BioNTech go up and down completely randomly.

Pair Corralation between Eastinco Mining and BioNTech

Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to under-perform the BioNTech. But the stock apears to be less risky and, when comparing its historical volatility, Eastinco Mining Exploration is 1.53 times less risky than BioNTech. The stock trades about -0.29 of its potential returns per unit of risk. The BioNTech SE is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  12,235  in BioNTech SE on October 7, 2024 and sell it today you would lose (660.00) from holding BioNTech SE or give up 5.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.0%
Values	Daily Returns

Eastinco Mining Exploration  vs.  BioNTech SE

Eastinco Mining Expl

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eastinco Mining Exploration has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

BioNTech SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BioNTech SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, BioNTech is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Eastinco Mining and BioNTech

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

The idea behind Eastinco Mining Exploration and BioNTech SE 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.