Correlation Between BioNTech and Addtech AB
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By analyzing existing cross correlation between BioNTech SE and Addtech AB, you can compare the effects of market volatilities on BioNTech and Addtech AB 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 Addtech AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Addtech AB.
Diversification Opportunities for BioNTech and Addtech AB
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioNTech and Addtech is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Addtech AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addtech AB 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 Addtech AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addtech AB has no effect on the direction of BioNTech i.e., BioNTech and Addtech AB go up and down completely randomly.
Pair Corralation between BioNTech and Addtech AB
Assuming the 90 days trading horizon BioNTech SE is expected to generate 2.45 times more return on investment than Addtech AB. However, BioNTech is 2.45 times more volatile than Addtech AB. It trades about 0.14 of its potential returns per unit of risk. Addtech AB is currently generating about -0.08 per unit of risk. If you would invest 11,290 in BioNTech SE on October 10, 2024 and sell it today you would earn a total of 700.00 from holding BioNTech SE or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Addtech AB
Performance |
| Timeline |
| BioNTech SE |
| Addtech AB |
BioNTech and Addtech AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Addtech AB
The main advantage of trading using opposite BioNTech and Addtech AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Addtech AB 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 Addtech AB will offset losses from the drop in Addtech AB's long position.| BioNTech vs. SOGECLAIR SA INH | BioNTech vs. Axway Software SA | BioNTech vs. UPDATE SOFTWARE | BioNTech vs. Alaska Air Group |
| Addtech AB vs. GameStop Corp | Addtech AB vs. Marie Brizard Wine | Addtech AB vs. PENN NATL GAMING | Addtech AB vs. OURGAME INTHOLDL 00005 |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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