Correlation Between BioNTech and Spirent Communications
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By analyzing existing cross correlation between BioNTech SE and Spirent Communications plc, you can compare the effects of market volatilities on BioNTech and Spirent Communications 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 Spirent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Spirent Communications.
Diversification Opportunities for BioNTech and Spirent Communications
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BioNTech and Spirent is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Spirent Communications plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spirent Communications 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 Spirent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spirent Communications has no effect on the direction of BioNTech i.e., BioNTech and Spirent Communications go up and down completely randomly.
Pair Corralation between BioNTech and Spirent Communications
Assuming the 90 days trading horizon BioNTech SE is expected to generate 0.67 times more return on investment than Spirent Communications. However, BioNTech SE is 1.49 times less risky than Spirent Communications. It trades about 0.1 of its potential returns per unit of risk. Spirent Communications plc is currently generating about -0.03 per unit of risk. If you would invest 11,280 in BioNTech SE on November 3, 2024 and sell it today you would earn a total of 560.00 from holding BioNTech SE or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Spirent Communications plc
Performance |
| Timeline |
| BioNTech SE |
| Spirent Communications |
BioNTech and Spirent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Spirent Communications
The main advantage of trading using opposite BioNTech and Spirent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Spirent Communications 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 Spirent Communications will offset losses from the drop in Spirent Communications' long position.| BioNTech vs. HELIOS TECHS INC | BioNTech vs. CODERE ONLINE LUX | BioNTech vs. ASPEN TECHINC DL | BioNTech vs. Playtech plc |
| Spirent Communications vs. Insurance Australia Group | Spirent Communications vs. Reinsurance Group of | Spirent Communications vs. Zurich Insurance Group | Spirent Communications vs. QBE Insurance Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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