Correlation Between Autohome and BioNTech
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By analyzing existing cross correlation between Autohome ADR and BioNTech SE, you can compare the effects of market volatilities on Autohome and BioNTech 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 Autohome with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohome and BioNTech.
Diversification Opportunities for Autohome and BioNTech
Poor diversification
The 3 months correlation between Autohome and BioNTech is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Autohome ADR and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Autohome 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 Autohome ADR are associated (or correlated) with BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of Autohome i.e., Autohome and BioNTech go up and down completely randomly.
Pair Corralation between Autohome and BioNTech
Assuming the 90 days trading horizon Autohome ADR is expected to under-perform the BioNTech. But the stock apears to be less risky and, when comparing its historical volatility, Autohome ADR is 1.93 times less risky than BioNTech. The stock trades about -0.01 of its potential returns per unit of risk. The BioNTech SE is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 10,430 in BioNTech SE on August 29, 2024 and sell it today you would earn a total of 950.00 from holding BioNTech SE or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autohome ADR vs. BioNTech SE
Performance |
| Timeline |
| Autohome ADR |
| BioNTech SE |
Autohome and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohome and BioNTech
The main advantage of trading using opposite Autohome and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohome position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech's long position.| Autohome vs. DeVry Education Group | Autohome vs. Vulcan Materials | Autohome vs. CHINA EDUCATION GROUP | Autohome vs. STRAYER EDUCATION |
| BioNTech vs. KB Financial Group | BioNTech vs. Superior Plus Corp | BioNTech vs. Origin Agritech | BioNTech vs. Identiv |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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