Correlation Between BioNTech and DANAHER

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

By analyzing existing cross correlation between BioNTech SE and DANAHER P 4375, you can compare the effects of market volatilities on BioNTech and DANAHER 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 DANAHER. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and DANAHER.

Diversification Opportunities for BioNTech and DANAHER

0.18

Correlation Coefficient

BioNTech  DANAHER

Average diversification

The 3 months correlation between BioNTech and DANAHER is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and DANAHER P 4375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DANAHER P 4375 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 DANAHER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DANAHER P 4375 has no effect on the direction of BioNTech i.e., BioNTech and DANAHER go up and down completely randomly.

Pair Corralation between BioNTech and DANAHER

Given the investment horizon of 90 days BioNTech SE is expected to under-perform the DANAHER. In addition to that, BioNTech is 2.65 times more volatile than DANAHER P 4375. It trades about -0.05 of its total potential returns per unit of risk. DANAHER P 4375 is currently generating about -0.02 per unit of volatility. If you would invest  8,786  in DANAHER P 4375 on December 24, 2024 and sell it today you would lose (111.00) from holding DANAHER P 4375 or give up 1.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	55.74%
Values	Daily Returns

BioNTech SE  vs.  DANAHER P 4375

BioNTech SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioNTech SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

DANAHER P 4375

Risk-Adjusted Performance

Very Weak

Over the last 90 days DANAHER P 4375 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, DANAHER is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BioNTech and DANAHER

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

The idea behind BioNTech SE and DANAHER P 4375 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.