Correlation Between Awilco Drilling and BioNTech
Can any of the company-specific risk be diversified away by investing in both Awilco Drilling 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 Awilco Drilling and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awilco Drilling PLC and BioNTech SE, you can compare the effects of market volatilities on Awilco Drilling 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 Awilco Drilling with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awilco Drilling and BioNTech.
Diversification Opportunities for Awilco Drilling and BioNTech
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Awilco and BioNTech is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Awilco Drilling PLC and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Awilco Drilling 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 Awilco Drilling PLC 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 Awilco Drilling i.e., Awilco Drilling and BioNTech go up and down completely randomly.
Pair Corralation between Awilco Drilling and BioNTech
Assuming the 90 days horizon Awilco Drilling PLC is expected to under-perform the BioNTech. But the otc stock apears to be less risky and, when comparing its historical volatility, Awilco Drilling PLC is 6.63 times less risky than BioNTech. The otc stock trades about -0.22 of its potential returns per unit of risk. The BioNTech SE is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 11,326 in BioNTech SE on August 27, 2024 and sell it today you would earn a total of 750.00 from holding BioNTech SE or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awilco Drilling PLC vs. BioNTech SE
Performance |
| Timeline |
| Awilco Drilling PLC |
| BioNTech SE |
Awilco Drilling and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awilco Drilling and BioNTech
The main advantage of trading using opposite Awilco Drilling and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awilco Drilling 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.| Awilco Drilling vs. Noble plc | Awilco Drilling vs. Sinopec Oilfield Service | Awilco Drilling vs. Transocean | Awilco Drilling vs. Helmerich and Payne |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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