Correlation Between Auction Technology and BioNTech
Can any of the company-specific risk be diversified away by investing in both Auction Technology 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 Auction Technology and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auction Technology Group and BioNTech SE, you can compare the effects of market volatilities on Auction Technology 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 Auction Technology with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auction Technology and BioNTech.
Diversification Opportunities for Auction Technology and BioNTech
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Auction and BioNTech is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Auction Technology Group and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Auction Technology 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 Auction Technology Group 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 Auction Technology i.e., Auction Technology and BioNTech go up and down completely randomly.
Pair Corralation between Auction Technology and BioNTech
Assuming the 90 days trading horizon Auction Technology is expected to generate 1.92 times less return on investment than BioNTech. In addition to that, Auction Technology is 1.04 times more volatile than BioNTech SE. It trades about 0.0 of its total potential returns per unit of risk. BioNTech SE is currently generating about 0.01 per unit of volatility. If you would invest 12,855 in BioNTech SE on November 27, 2024 and sell it today you would lose (1,010) from holding BioNTech SE or give up 7.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.01% |
| Values | Daily Returns |
Auction Technology Group vs. BioNTech SE
Performance |
| Timeline |
| Auction Technology |
| BioNTech SE |
Auction Technology and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auction Technology and BioNTech
The main advantage of trading using opposite Auction Technology and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction Technology 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.| Auction Technology vs. Dalata Hotel Group | Auction Technology vs. Infineon Technologies AG | Auction Technology vs. Kinnevik Investment AB | Auction Technology vs. Technicolor |
| BioNTech vs. Sealed Air Corp | BioNTech vs. Finnair Oyj | BioNTech vs. Gruppo MutuiOnline SpA | BioNTech vs. Air Products Chemicals |
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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