Correlation Between Concurrent Technologies and BioNTech

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

By analyzing existing cross correlation between Concurrent Technologies Plc and BioNTech SE, you can compare the effects of market volatilities on Concurrent Technologies and BioNTech 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 Concurrent Technologies with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and BioNTech.

Diversification Opportunities for Concurrent Technologies and BioNTech

-0.07

Correlation Coefficient

Concurrent Technologies  BioNTech

Good diversification

The 3 months correlation between Concurrent and BioNTech is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Concurrent Technologies 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 Concurrent Technologies Plc are associated (or correlated) with BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and BioNTech go up and down completely randomly.

Pair Corralation between Concurrent Technologies and BioNTech

Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 1.0 times more return on investment than BioNTech. However, Concurrent Technologies Plc is 1.0 times less risky than BioNTech. It trades about 0.11 of its potential returns per unit of risk. BioNTech SE is currently generating about -0.01 per unit of risk. If you would invest  11,300  in Concurrent Technologies Plc on October 8, 2024 and sell it today you would earn a total of  2,350  from holding Concurrent Technologies Plc or generate 20.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Concurrent Technologies Plc  vs.  BioNTech SE

Concurrent Technologies

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Concurrent Technologies Plc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Concurrent Technologies exhibited solid returns over the last few months and may actually be approaching a breakup point.

BioNTech SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BioNTech SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, BioNTech is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Concurrent Technologies and BioNTech

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

The idea behind Concurrent Technologies Plc and BioNTech SE 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 Anywhere module to track or share privately all of your investments from the convenience of any device.