Correlation Between BioNTech and SK TELECOM
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By analyzing existing cross correlation between BioNTech SE and SK TELECOM TDADR, you can compare the effects of market volatilities on BioNTech and SK TELECOM 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 SK TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and SK TELECOM.
Diversification Opportunities for BioNTech and SK TELECOM
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BioNTech and KMBA is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and SK TELECOM TDADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK TELECOM TDADR 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 SK TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK TELECOM TDADR has no effect on the direction of BioNTech i.e., BioNTech and SK TELECOM go up and down completely randomly.
Pair Corralation between BioNTech and SK TELECOM
Assuming the 90 days trading horizon BioNTech SE is expected to generate 1.45 times more return on investment than SK TELECOM. However, BioNTech is 1.45 times more volatile than SK TELECOM TDADR. It trades about 0.06 of its potential returns per unit of risk. SK TELECOM TDADR is currently generating about 0.08 per unit of risk. If you would invest 9,430 in BioNTech SE on August 31, 2024 and sell it today you would earn a total of 1,930 from holding BioNTech SE or generate 20.47% 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. SK TELECOM TDADR
Performance |
| Timeline |
| BioNTech SE |
| SK TELECOM TDADR |
BioNTech and SK TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and SK TELECOM
The main advantage of trading using opposite BioNTech and SK TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, SK TELECOM 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 SK TELECOM will offset losses from the drop in SK TELECOM's long position.| BioNTech vs. VITEC SOFTWARE GROUP | BioNTech vs. DeVry Education Group | BioNTech vs. Grand Canyon Education | BioNTech vs. BE Semiconductor Industries |
| SK TELECOM vs. SEI INVESTMENTS | SK TELECOM vs. Apollo Investment Corp | SK TELECOM vs. Strategic Investments AS | SK TELECOM vs. SIDETRADE EO 1 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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