Correlation Between BioNTech and Integral

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

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

Diversification Opportunities for BioNTech and Integral

-0.3

Correlation Coefficient

BioNTech  Integral

Very good diversification

The 3 months correlation between BioNTech and Integral is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of BioNTech i.e., BioNTech and Integral go up and down completely randomly.

Pair Corralation between BioNTech and Integral

Given the investment horizon of 90 days BioNTech SE is expected to generate 1.01 times more return on investment than Integral. However, BioNTech is 1.01 times more volatile than Integral Ad Science. It trades about 0.08 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.17 per unit of risk. If you would invest  11,064  in BioNTech SE on October 9, 2024 and sell it today you would earn a total of  957.00  from holding BioNTech SE or generate 8.65% return on investment over 90 days.

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

BioNTech SE  vs.  Integral Ad Science

BioNTech SE

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 2 (%) 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.

Integral Ad Science

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Integral Ad Science has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Integral is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BioNTech and Integral

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

The idea behind BioNTech SE and Integral Ad Science 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.