Correlation Between BioNTech and Omeros
Can any of the company-specific risk be diversified away by investing in both BioNTech and Omeros 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 Omeros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Omeros, you can compare the effects of market volatilities on BioNTech and Omeros 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 Omeros. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Omeros.
Diversification Opportunities for BioNTech and Omeros
Weak diversification
The 3 months correlation between BioNTech and Omeros is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Omeros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omeros 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 Omeros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omeros has no effect on the direction of BioNTech i.e., BioNTech and Omeros go up and down completely randomly.
Pair Corralation between BioNTech and Omeros
Assuming the 90 days trading horizon BioNTech is expected to generate 9.52 times less return on investment than Omeros. But when comparing it to its historical volatility, BioNTech SE is 4.41 times less risky than Omeros. It trades about 0.16 of its potential returns per unit of risk. Omeros is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 401.00 in Omeros on September 6, 2024 and sell it today you would earn a total of 698.00 from holding Omeros or generate 174.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BioNTech SE vs. Omeros
Performance |
| Timeline |
| BioNTech SE |
| Omeros |
BioNTech and Omeros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Omeros
The main advantage of trading using opposite BioNTech and Omeros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Omeros 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 Omeros will offset losses from the drop in Omeros' long position.The idea behind BioNTech SE and Omeros 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.| Omeros vs. MICRONIC MYDATA | Omeros vs. National Beverage Corp | Omeros vs. National Storage Affiliates | Omeros vs. TERADATA |
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.
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