Correlation Between BioNTech and Datagroup
Can any of the company-specific risk be diversified away by investing in both BioNTech and Datagroup 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 Datagroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Datagroup SE, you can compare the effects of market volatilities on BioNTech and Datagroup 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 Datagroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Datagroup.
Diversification Opportunities for BioNTech and Datagroup
Modest diversification
The 3 months correlation between BioNTech and Datagroup is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Datagroup SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagroup SE 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 Datagroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagroup SE has no effect on the direction of BioNTech i.e., BioNTech and Datagroup go up and down completely randomly.
Pair Corralation between BioNTech and Datagroup
Assuming the 90 days trading horizon BioNTech SE is expected to generate 1.22 times more return on investment than Datagroup. However, BioNTech is 1.22 times more volatile than Datagroup SE. It trades about -0.01 of its potential returns per unit of risk. Datagroup SE is currently generating about -0.02 per unit of risk. If you would invest 15,070 in BioNTech SE on August 28, 2024 and sell it today you would lose (3,460) from holding BioNTech SE or give up 22.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.14% |
| Values | Daily Returns |
BioNTech SE vs. Datagroup SE
Performance |
| Timeline |
| BioNTech SE |
| Datagroup SE |
BioNTech and Datagroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Datagroup
The main advantage of trading using opposite BioNTech and Datagroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Datagroup 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 Datagroup will offset losses from the drop in Datagroup's long position.| BioNTech vs. Admiral Group PLC | BioNTech vs. Anglo American PLC | BioNTech vs. Vodafone Group PLC | BioNTech vs. Caffyns PLC |
| Datagroup vs. BioNTech SE | Datagroup vs. Dolly Varden Silver | Datagroup vs. Albion Technology General | Datagroup vs. Roper Technologies |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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