Correlation Between BioNTech and HK Electric
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By analyzing existing cross correlation between BioNTech SE and HK Electric Investments, you can compare the effects of market volatilities on BioNTech and HK Electric 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 HK Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and HK Electric.
Diversification Opportunities for BioNTech and HK Electric
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioNTech and HKT is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and HK Electric Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Electric Investments 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 HK Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Electric Investments has no effect on the direction of BioNTech i.e., BioNTech and HK Electric go up and down completely randomly.
Pair Corralation between BioNTech and HK Electric
Assuming the 90 days trading horizon BioNTech is expected to generate 2.31 times less return on investment than HK Electric. In addition to that, BioNTech is 3.78 times more volatile than HK Electric Investments. It trades about 0.03 of its total potential returns per unit of risk. HK Electric Investments is currently generating about 0.24 per unit of volatility. If you would invest 63.00 in HK Electric Investments on October 17, 2024 and sell it today you would earn a total of 2.00 from holding HK Electric Investments or generate 3.17% 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. HK Electric Investments
Performance |
| Timeline |
| BioNTech SE |
| HK Electric Investments |
BioNTech and HK Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and HK Electric
The main advantage of trading using opposite BioNTech and HK Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, HK Electric 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 HK Electric will offset losses from the drop in HK Electric's long position.| BioNTech vs. Dalata Hotel Group | BioNTech vs. MHP Hotel AG | BioNTech vs. The Hongkong and | BioNTech vs. Global Ship Lease |
| HK Electric vs. EAGLE MATERIALS | HK Electric vs. BioNTech SE | HK Electric vs. SWISS WATER DECAFFCOFFEE | HK Electric vs. Kingdee International Software |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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