Correlation Between OncoSec Medical and BioNTech

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

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

Diversification Opportunities for OncoSec Medical and BioNTech

-0.27

Correlation Coefficient

OncoSec Medical  BioNTech

Very good diversification

The 3 months correlation between OncoSec and BioNTech is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding OncoSec Medical and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and OncoSec Medical 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 OncoSec Medical 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 OncoSec Medical i.e., OncoSec Medical and BioNTech go up and down completely randomly.

Pair Corralation between OncoSec Medical and BioNTech

Given the investment horizon of 90 days OncoSec Medical is expected to under-perform the BioNTech. In addition to that, OncoSec Medical is 4.68 times more volatile than BioNTech SE. It trades about -0.18 of its total potential returns per unit of risk. BioNTech SE is currently generating about 0.02 per unit of volatility. If you would invest  10,782  in BioNTech SE on October 24, 2024 and sell it today you would earn a total of  764.00  from holding BioNTech SE or generate 7.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.09%
Values	Daily Returns

OncoSec Medical  vs.  BioNTech SE

OncoSec Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OncoSec Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, OncoSec Medical is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

BioNTech SE

Risk-Adjusted Performance

1 of 100

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 current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with OncoSec Medical and BioNTech

The main advantage of trading using opposite OncoSec Medical and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OncoSec Medical 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 OncoSec Medical 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.