Correlation Between BioNTech and EnVVeno Medical

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Can any of the company-specific risk be diversified away by investing in both BioNTech and EnVVeno Medical 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 EnVVeno Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and enVVeno Medical Corp, you can compare the effects of market volatilities on BioNTech and EnVVeno Medical 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 EnVVeno Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and EnVVeno Medical.

Diversification Opportunities for BioNTech and EnVVeno Medical

BioNTechEnVVenoDiversified AwayBioNTechEnVVenoDiversified Away100%
-0.17
  Correlation Coefficient

Good diversification

The 3 months correlation between BioNTech and EnVVeno is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and enVVeno Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enVVeno Medical Corp 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 EnVVeno Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enVVeno Medical Corp has no effect on the direction of BioNTech i.e., BioNTech and EnVVeno Medical go up and down completely randomly.

Pair Corralation between BioNTech and EnVVeno Medical

Given the investment horizon of 90 days BioNTech SE is expected to generate 0.58 times more return on investment than EnVVeno Medical. However, BioNTech SE is 1.71 times less risky than EnVVeno Medical. It trades about 0.01 of its potential returns per unit of risk. enVVeno Medical Corp is currently generating about -0.17 per unit of risk. If you would invest  11,305  in BioNTech SE on September 23, 2024 and sell it today you would earn a total of  3.00  from holding BioNTech SE or generate 0.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

BioNTech SE  vs.  enVVeno Medical Corp

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -40-30-20-10010
JavaScript chart by amCharts 3.21.15BNTX NVNO
       Timeline  
BioNTech SE 

Risk-Adjusted Performance

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Weak
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 latest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec95100105110115120125
enVVeno Medical Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days enVVeno Medical Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec2.62.833.23.43.63.8

BioNTech and EnVVeno Medical Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.45-6.33-4.21-2.090.02.14.246.378.51 0.020.030.040.05
JavaScript chart by amCharts 3.21.15BNTX NVNO
       Returns  

Pair Trading with BioNTech and EnVVeno Medical

The main advantage of trading using opposite BioNTech and EnVVeno Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, EnVVeno Medical 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 EnVVeno Medical will offset losses from the drop in EnVVeno Medical's long position.
The idea behind BioNTech SE and enVVeno Medical Corp 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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