Correlation Between BioNTech and CXApp

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

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

Diversification Opportunities for BioNTech and CXApp

-0.4

Correlation Coefficient

BioNTech  CXApp

Very good diversification

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

Pair Corralation between BioNTech and CXApp

Given the investment horizon of 90 days BioNTech SE is expected to under-perform the CXApp. But the stock apears to be less risky and, when comparing its historical volatility, BioNTech SE is 6.9 times less risky than CXApp. The stock trades about 0.0 of its potential returns per unit of risk. The CXApp Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  7.00  in CXApp Inc on October 11, 2024 and sell it today you would earn a total of  13.00  from holding CXApp Inc or generate 185.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.99%
Values	Daily Returns

BioNTech SE  vs.  CXApp Inc

BioNTech SE

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, BioNTech is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CXApp Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CXApp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, CXApp is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with BioNTech and CXApp

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

The idea behind BioNTech SE and CXApp 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.