Correlation Between BioNTech and China Resources
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By analyzing existing cross correlation between BioNTech SE and China Resources Power, you can compare the effects of market volatilities on BioNTech and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and China Resources.
Diversification Opportunities for BioNTech and China Resources
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between BioNTech and China is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and China Resources Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Power 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Power has no effect on the direction of BioNTech i.e., BioNTech and China Resources go up and down completely randomly.
Pair Corralation between BioNTech and China Resources
Assuming the 90 days trading horizon BioNTech SE is expected to generate 2.02 times more return on investment than China Resources. However, BioNTech is 2.02 times more volatile than China Resources Power. It trades about 0.12 of its potential returns per unit of risk. China Resources Power is currently generating about -0.35 per unit of risk. If you would invest 10,870 in BioNTech SE on October 30, 2024 and sell it today you would earn a total of 590.00 from holding BioNTech SE or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
BioNTech SE vs. China Resources Power
Performance |
| Timeline |
| BioNTech SE |
| China Resources Power |
BioNTech and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and China Resources
The main advantage of trading using opposite BioNTech and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| BioNTech vs. METTLER TOLEDO INTL | BioNTech vs. LODESTAR MIN | BioNTech vs. Carmat SA | BioNTech vs. Air Canada |
| China Resources vs. GEELY AUTOMOBILE | China Resources vs. Carsales | China Resources vs. NAGOYA RAILROAD | China Resources vs. GOLD ROAD RES |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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