Correlation Between BioNTech and Viridian Therapeutics
Can any of the company-specific risk be diversified away by investing in both BioNTech and Viridian Therapeutics 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 Viridian Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Viridian Therapeutics, you can compare the effects of market volatilities on BioNTech and Viridian Therapeutics 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 Viridian Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Viridian Therapeutics.
Diversification Opportunities for BioNTech and Viridian Therapeutics
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between BioNTech and Viridian is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Viridian Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viridian Therapeutics 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 Viridian Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viridian Therapeutics has no effect on the direction of BioNTech i.e., BioNTech and Viridian Therapeutics go up and down completely randomly.
Pair Corralation between BioNTech and Viridian Therapeutics
Assuming the 90 days trading horizon BioNTech SE is expected to generate 1.24 times more return on investment than Viridian Therapeutics. However, BioNTech is 1.24 times more volatile than Viridian Therapeutics. It trades about 0.13 of its potential returns per unit of risk. Viridian Therapeutics is currently generating about -0.38 per unit of risk. If you would invest 10,866 in BioNTech SE on September 12, 2024 and sell it today you would earn a total of 1,059 from holding BioNTech SE or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Viridian Therapeutics
Performance |
| Timeline |
| BioNTech SE |
| Viridian Therapeutics |
BioNTech and Viridian Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Viridian Therapeutics
The main advantage of trading using opposite BioNTech and Viridian Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Viridian Therapeutics 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 Viridian Therapeutics will offset losses from the drop in Viridian Therapeutics' long position.| BioNTech vs. Mulberry Group PLC | BioNTech vs. Ikigai Ventures | BioNTech vs. Neometals | BioNTech vs. Coor Service Management |
| Viridian Therapeutics vs. Vitec Software Group | Viridian Therapeutics vs. HCA Healthcare | Viridian Therapeutics vs. Tyson Foods Cl | Viridian Therapeutics vs. Cardinal Health |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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