Correlation Between Aldel Financial and BioNTech
Can any of the company-specific risk be diversified away by investing in both Aldel Financial and BioNTech at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aldel Financial and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and BioNTech SE, you can compare the effects of market volatilities on Aldel Financial 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 Aldel Financial with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and BioNTech.
Diversification Opportunities for Aldel Financial and BioNTech
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aldel and BioNTech is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Aldel Financial 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 Aldel Financial II 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 Aldel Financial i.e., Aldel Financial and BioNTech go up and down completely randomly.
Pair Corralation between Aldel Financial and BioNTech
Assuming the 90 days horizon Aldel Financial is expected to generate 27.0 times less return on investment than BioNTech. But when comparing it to its historical volatility, Aldel Financial II is 20.27 times less risky than BioNTech. It trades about 0.08 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 11,193 in BioNTech SE on November 18, 2024 and sell it today you would earn a total of 790.00 from holding BioNTech SE or generate 7.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aldel Financial II vs. BioNTech SE
Performance |
| Timeline |
| Aldel Financial II |
| BioNTech SE |
Aldel Financial and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and BioNTech
The main advantage of trading using opposite Aldel Financial and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial 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.| Aldel Financial vs. Genuine Parts Co | Aldel Financial vs. Vita Coco | Aldel Financial vs. Willamette Valley Vineyards | Aldel Financial vs. Diageo PLC ADR |
| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stocks Directory Find actively traded stocks across global markets |