Correlation Between SilverBox Corp and BioNTech

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

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

Diversification Opportunities for SilverBox Corp and BioNTech

0.21

Correlation Coefficient

SilverBox Corp  BioNTech

Modest diversification

The 3 months correlation between SilverBox and BioNTech is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SilverBox Corp III and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and SilverBox Corp 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 SilverBox Corp III 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 SilverBox Corp i.e., SilverBox Corp and BioNTech go up and down completely randomly.

Pair Corralation between SilverBox Corp and BioNTech

Given the investment horizon of 90 days SilverBox Corp is expected to generate 5.99 times less return on investment than BioNTech. But when comparing it to its historical volatility, SilverBox Corp III is 2.19 times less risky than BioNTech. It trades about 0.03 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  8,899  in BioNTech SE on October 20, 2024 and sell it today you would earn a total of  2,294  from holding BioNTech SE or generate 25.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	51.92%
Values	Daily Returns

SilverBox Corp III  vs.  BioNTech SE

SilverBox Corp III

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SilverBox Corp III has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SilverBox Corp is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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 SilverBox Corp and BioNTech

The main advantage of trading using opposite SilverBox Corp and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SilverBox Corp 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 SilverBox Corp III 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.