Correlation Between Margo Caribe and BioNTech

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

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

Diversification Opportunities for Margo Caribe and BioNTech

0.0

Correlation Coefficient

Margo Caribe  BioNTech

Pay attention - limited upside

The 3 months correlation between Margo and BioNTech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Margo Caribe and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Margo Caribe 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 Margo Caribe 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 Margo Caribe i.e., Margo Caribe and BioNTech go up and down completely randomly.

Pair Corralation between Margo Caribe and BioNTech

If you would invest  0.00  in Margo Caribe on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Margo Caribe or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Margo Caribe  vs.  BioNTech SE

Margo Caribe

Risk-Adjusted Performance

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Modest

Over the last 90 days Margo Caribe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Margo Caribe is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

BioNTech SE

Risk-Adjusted Performance

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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 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.

Pair Trading with Margo Caribe and BioNTech

The main advantage of trading using opposite Margo Caribe and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Margo Caribe 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 Margo Caribe 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.