Correlation Between 49456BAX9 and BioNTech

Can any of the company-specific risk be diversified away by investing in both 49456BAX9 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 49456BAX9 and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KMI 52 01 JUN 33 and BioNTech SE, you can compare the effects of market volatilities on 49456BAX9 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 49456BAX9 with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of 49456BAX9 and BioNTech.

Diversification Opportunities for 49456BAX9 and BioNTech

-0.01

Correlation Coefficient

49456BAX9  BioNTech

Good diversification

The 3 months correlation between 49456BAX9 and BioNTech is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding KMI 52 01 JUN 33 and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and 49456BAX9 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 KMI 52 01 JUN 33 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 49456BAX9 i.e., 49456BAX9 and BioNTech go up and down completely randomly.

Pair Corralation between 49456BAX9 and BioNTech

Assuming the 90 days trading horizon 49456BAX9 is expected to generate 2.38 times less return on investment than BioNTech. But when comparing it to its historical volatility, KMI 52 01 JUN 33 is 4.8 times less risky than BioNTech. It trades about 0.04 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  11,088  in BioNTech SE on October 22, 2024 and sell it today you would earn a total of  105.00  from holding BioNTech SE or generate 0.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

KMI 52 01 JUN 33  vs.  BioNTech SE

KMI 52 01

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KMI 52 01 JUN 33 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 49456BAX9 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the 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 49456BAX9 and BioNTech

The main advantage of trading using opposite 49456BAX9 and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 49456BAX9 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 KMI 52 01 JUN 33 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.