Correlation Between BIONTECH and Unifique Telecomunicaes

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

By analyzing existing cross correlation between BIONTECH SE DRN and Unifique Telecomunicaes SA, you can compare the effects of market volatilities on BIONTECH and Unifique Telecomunicaes 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 Unifique Telecomunicaes. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIONTECH and Unifique Telecomunicaes.

Diversification Opportunities for BIONTECH and Unifique Telecomunicaes

-0.75

Correlation Coefficient

BIONTECH  Unifique Telecomunicaes

Pay attention - limited upside

The 3 months correlation between BIONTECH and Unifique is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding BIONTECH SE DRN and Unifique Telecomunicaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unifique Telecomunicaes 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 DRN are associated (or correlated) with Unifique Telecomunicaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unifique Telecomunicaes has no effect on the direction of BIONTECH i.e., BIONTECH and Unifique Telecomunicaes go up and down completely randomly.

Pair Corralation between BIONTECH and Unifique Telecomunicaes

Assuming the 90 days trading horizon BIONTECH SE DRN is expected to generate 1.23 times more return on investment than Unifique Telecomunicaes. However, BIONTECH is 1.23 times more volatile than Unifique Telecomunicaes SA. It trades about 0.11 of its potential returns per unit of risk. Unifique Telecomunicaes SA is currently generating about -0.12 per unit of risk. If you would invest  4,474  in BIONTECH SE DRN on October 13, 2024 and sell it today you would earn a total of  191.00  from holding BIONTECH SE DRN or generate 4.27% return on investment over 90 days.

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

BIONTECH SE DRN  vs.  Unifique Telecomunicaes SA

BIONTECH SE DRN

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BIONTECH SE DRN are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, BIONTECH sustained solid returns over the last few months and may actually be approaching a breakup point.

Unifique Telecomunicaes

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Unifique Telecomunicaes SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with BIONTECH and Unifique Telecomunicaes

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

The idea behind BIONTECH SE DRN and Unifique Telecomunicaes SA 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.