Correlation Between BioNTech and Akeso,

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

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

Diversification Opportunities for BioNTech and Akeso,

-0.4

Correlation Coefficient

BioNTech  Akeso,

Very good diversification

The 3 months correlation between BioNTech and Akeso, is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Akeso, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akeso, Inc 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 Akeso,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akeso, Inc has no effect on the direction of BioNTech i.e., BioNTech and Akeso, go up and down completely randomly.

Pair Corralation between BioNTech and Akeso,

Given the investment horizon of 90 days BioNTech SE is expected to generate 0.83 times more return on investment than Akeso,. However, BioNTech SE is 1.21 times less risky than Akeso,. It trades about 0.08 of its potential returns per unit of risk. Akeso, Inc is currently generating about -0.03 per unit of risk. If you would invest  10,640  in BioNTech SE on November 19, 2024 and sell it today you would earn a total of  1,343  from holding BioNTech SE or generate 12.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.31%
Values	Daily Returns

BioNTech SE  vs.  Akeso, Inc

BioNTech SE

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, BioNTech showed solid returns over the last few months and may actually be approaching a breakup point.

Akeso, Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akeso, Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with BioNTech and Akeso,

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

The idea behind BioNTech SE and Akeso, Inc 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.