Correlation Between BioNTech and CVS Health
Can any of the company-specific risk be diversified away by investing in both BioNTech and CVS Health 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 BioNTech and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and CVS Health Corp, you can compare the effects of market volatilities on BioNTech and CVS Health 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 BioNTech with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and CVS Health.
Diversification Opportunities for BioNTech and CVS Health
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioNTech and CVS is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and CVS Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health Corp and BioNTech 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 BioNTech SE are associated (or correlated) with CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health Corp has no effect on the direction of BioNTech i.e., BioNTech and CVS Health go up and down completely randomly.
Pair Corralation between BioNTech and CVS Health
Assuming the 90 days trading horizon BioNTech is expected to generate 3.87 times less return on investment than CVS Health. In addition to that, BioNTech is 1.03 times more volatile than CVS Health Corp. It trades about 0.02 of its total potential returns per unit of risk. CVS Health Corp is currently generating about 0.07 per unit of volatility. If you would invest 5,737 in CVS Health Corp on August 27, 2024 and sell it today you would earn a total of 264.00 from holding CVS Health Corp or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. CVS Health Corp
Performance |
| Timeline |
| BioNTech SE |
| CVS Health Corp |
BioNTech and CVS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and CVS Health
The main advantage of trading using opposite BioNTech and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, CVS Health 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 CVS Health will offset losses from the drop in CVS Health's long position.| BioNTech vs. Admiral Group PLC | BioNTech vs. Anglo American PLC | BioNTech vs. Vodafone Group PLC | BioNTech vs. Caffyns PLC |
| CVS Health vs. Samsung Electronics Co | CVS Health vs. Samsung Electronics Co | CVS Health vs. Hyundai Motor | CVS Health vs. Toyota Motor Corp |
Check out your portfolio center.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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |