Correlation Between BioNTech and Beazer Homes
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By analyzing existing cross correlation between BioNTech SE and Beazer Homes USA, you can compare the effects of market volatilities on BioNTech and Beazer Homes 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 Beazer Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Beazer Homes.
Diversification Opportunities for BioNTech and Beazer Homes
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioNTech and Beazer is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Beazer Homes USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beazer Homes USA 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 Beazer Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beazer Homes USA has no effect on the direction of BioNTech i.e., BioNTech and Beazer Homes go up and down completely randomly.
Pair Corralation between BioNTech and Beazer Homes
Assuming the 90 days trading horizon BioNTech is expected to generate 1.49 times less return on investment than Beazer Homes. But when comparing it to its historical volatility, BioNTech SE is 1.15 times less risky than Beazer Homes. It trades about 0.04 of its potential returns per unit of risk. Beazer Homes USA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,180 in Beazer Homes USA on August 25, 2024 and sell it today you would earn a total of 840.00 from holding Beazer Homes USA or generate 38.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
BioNTech SE vs. Beazer Homes USA
Performance |
| Timeline |
| BioNTech SE |
| Beazer Homes USA |
BioNTech and Beazer Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Beazer Homes
The main advantage of trading using opposite BioNTech and Beazer Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Beazer Homes 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 Beazer Homes will offset losses from the drop in Beazer Homes' long position.| BioNTech vs. Beazer Homes USA | BioNTech vs. Taylor Morrison Home | BioNTech vs. Hisense Home Appliances | BioNTech vs. Autohome ADR |
| Beazer Homes vs. Safety Insurance Group | Beazer Homes vs. ECHO INVESTMENT ZY | Beazer Homes vs. HANOVER INSURANCE | Beazer Homes vs. MSAD INSURANCE |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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