Correlation Between BioNTech and Playtech Plc
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By analyzing existing cross correlation between BioNTech SE and Playtech plc, you can compare the effects of market volatilities on BioNTech and Playtech Plc 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 Playtech Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Playtech Plc.
Diversification Opportunities for BioNTech and Playtech Plc
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BioNTech and Playtech is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Playtech plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtech plc 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 Playtech Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtech plc has no effect on the direction of BioNTech i.e., BioNTech and Playtech Plc go up and down completely randomly.
Pair Corralation between BioNTech and Playtech Plc
Assuming the 90 days trading horizon BioNTech SE is expected to generate 4.54 times more return on investment than Playtech Plc. However, BioNTech is 4.54 times more volatile than Playtech plc. It trades about 0.12 of its potential returns per unit of risk. Playtech plc is currently generating about 0.12 per unit of risk. If you would invest 10,330 in BioNTech SE on September 1, 2024 and sell it today you would earn a total of 1,030 from holding BioNTech SE or generate 9.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BioNTech SE vs. Playtech plc
Performance |
| Timeline |
| BioNTech SE |
| Playtech plc |
BioNTech and Playtech Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Playtech Plc
The main advantage of trading using opposite BioNTech and Playtech Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Playtech Plc 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 Playtech Plc will offset losses from the drop in Playtech Plc's long position.| BioNTech vs. COSMOSTEEL HLDGS | BioNTech vs. LEGACY IRON ORE | BioNTech vs. Reliance Steel Aluminum | BioNTech vs. MITSUBISHI STEEL MFG |
| Playtech Plc vs. Apple Inc | Playtech Plc vs. Apple Inc | Playtech Plc vs. Apple Inc | Playtech Plc vs. Apple Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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