Correlation Between BioNTech and Mink Therapeutics
Can any of the company-specific risk be diversified away by investing in both BioNTech and Mink Therapeutics 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 Mink Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Mink Therapeutics, you can compare the effects of market volatilities on BioNTech and Mink Therapeutics 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 Mink Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Mink Therapeutics.
Diversification Opportunities for BioNTech and Mink Therapeutics
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between BioNTech and Mink is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Mink Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mink Therapeutics 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 Mink Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mink Therapeutics has no effect on the direction of BioNTech i.e., BioNTech and Mink Therapeutics go up and down completely randomly.
Pair Corralation between BioNTech and Mink Therapeutics
Given the investment horizon of 90 days BioNTech SE is expected to generate 0.83 times more return on investment than Mink Therapeutics. However, BioNTech SE is 1.2 times less risky than Mink Therapeutics. It trades about 0.1 of its potential returns per unit of risk. Mink Therapeutics is currently generating about -0.1 per unit of risk. If you would invest 8,252 in BioNTech SE on September 24, 2024 and sell it today you would earn a total of 3,056 from holding BioNTech SE or generate 37.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.21% |
Values | Daily Returns |
BioNTech SE vs. Mink Therapeutics
Performance |
Timeline |
BioNTech SE |
Mink Therapeutics |
BioNTech and Mink Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BioNTech and Mink Therapeutics
The main advantage of trading using opposite BioNTech and Mink Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Mink Therapeutics 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 Mink Therapeutics will offset losses from the drop in Mink Therapeutics' long position.BioNTech vs. Fate Therapeutics | BioNTech vs. Sana Biotechnology | BioNTech vs. Caribou Biosciences | BioNTech vs. Arcus Biosciences |
Mink Therapeutics vs. Fate Therapeutics | Mink Therapeutics vs. Sana Biotechnology | Mink Therapeutics vs. Caribou Biosciences | Mink Therapeutics vs. Arcus Biosciences |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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