Correlation Between BioNTech and Ashtead Technology
Can any of the company-specific risk be diversified away by investing in both BioNTech and Ashtead Technology 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 Ashtead Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Ashtead Technology Holdings, you can compare the effects of market volatilities on BioNTech and Ashtead Technology 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 Ashtead Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Ashtead Technology.
Diversification Opportunities for BioNTech and Ashtead Technology
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioNTech and Ashtead is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Ashtead Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashtead Technology 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 Ashtead Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashtead Technology has no effect on the direction of BioNTech i.e., BioNTech and Ashtead Technology go up and down completely randomly.
Pair Corralation between BioNTech and Ashtead Technology
Assuming the 90 days trading horizon BioNTech SE is expected to generate 1.06 times more return on investment than Ashtead Technology. However, BioNTech is 1.06 times more volatile than Ashtead Technology Holdings. It trades about 0.06 of its potential returns per unit of risk. Ashtead Technology Holdings is currently generating about -0.08 per unit of risk. If you would invest 9,938 in BioNTech SE on September 2, 2024 and sell it today you would earn a total of 2,062 from holding BioNTech SE or generate 20.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Ashtead Technology Holdings
Performance |
| Timeline |
| BioNTech SE |
| Ashtead Technology |
BioNTech and Ashtead Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Ashtead Technology
The main advantage of trading using opposite BioNTech and Ashtead Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Ashtead Technology 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 Ashtead Technology will offset losses from the drop in Ashtead Technology's long position.| BioNTech vs. Premier Foods PLC | BioNTech vs. Hochschild Mining plc | BioNTech vs. Lindsell Train Investment | BioNTech vs. Roadside Real Estate |
| Ashtead Technology vs. Zoom Video Communications | Ashtead Technology vs. Enbridge | Ashtead Technology vs. Endo International PLC | Ashtead Technology vs. Diversified Energy |
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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