Correlation Between BioNTech and BB Biotech
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By analyzing existing cross correlation between BioNTech SE and BB Biotech AG, you can compare the effects of market volatilities on BioNTech and BB Biotech 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 BB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and BB Biotech.
Diversification Opportunities for BioNTech and BB Biotech
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioNTech and BBZA is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and BB Biotech AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Biotech AG 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 BB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Biotech AG has no effect on the direction of BioNTech i.e., BioNTech and BB Biotech go up and down completely randomly.
Pair Corralation between BioNTech and BB Biotech
Assuming the 90 days trading horizon BioNTech SE is expected to generate 2.29 times more return on investment than BB Biotech. However, BioNTech is 2.29 times more volatile than BB Biotech AG. It trades about 0.1 of its potential returns per unit of risk. BB Biotech AG is currently generating about 0.09 per unit of risk. If you would invest 10,490 in BioNTech SE on September 1, 2024 and sell it today you would earn a total of 760.00 from holding BioNTech SE or generate 7.24% 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. BB Biotech AG
Performance |
| Timeline |
| BioNTech SE |
| BB Biotech AG |
BioNTech and BB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and BB Biotech
The main advantage of trading using opposite BioNTech and BB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, BB Biotech 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 BB Biotech will offset losses from the drop in BB Biotech's long position.The idea behind BioNTech SE and BB Biotech AG 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.| BB Biotech vs. MITSUBISHI STEEL MFG | BB Biotech vs. SERI INDUSTRIAL EO | BB Biotech vs. LION ONE METALS | BB Biotech vs. Harmony Gold Mining |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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