Correlation Between Australian Agricultural and BioNTech
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By analyzing existing cross correlation between Australian Agricultural and BioNTech SE, you can compare the effects of market volatilities on Australian Agricultural 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 Australian Agricultural with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Australian Agricultural and BioNTech.
Diversification Opportunities for Australian Agricultural and BioNTech
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Australian and BioNTech is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Australian Agricultural and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Australian Agricultural 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 Australian Agricultural 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 Australian Agricultural i.e., Australian Agricultural and BioNTech go up and down completely randomly.
Pair Corralation between Australian Agricultural and BioNTech
Assuming the 90 days horizon Australian Agricultural is expected to under-perform the BioNTech. But the stock apears to be less risky and, when comparing its historical volatility, Australian Agricultural is 2.82 times less risky than BioNTech. The stock trades about -0.08 of its potential returns per unit of risk. The BioNTech SE is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 11,060 in BioNTech SE on October 15, 2024 and sell it today you would earn a total of 880.00 from holding BioNTech SE or generate 7.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Australian Agricultural vs. BioNTech SE
Performance |
| Timeline |
| Australian Agricultural |
| BioNTech SE |
Australian Agricultural and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Australian Agricultural and BioNTech
The main advantage of trading using opposite Australian Agricultural and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Australian Agricultural 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.| Australian Agricultural vs. ASPEN TECHINC DL | Australian Agricultural vs. GEAR4MUSIC LS 10 | Australian Agricultural vs. Addtech AB | Australian Agricultural vs. Coffee Holding Co |
| BioNTech vs. Australian Agricultural | BioNTech vs. AEGEAN AIRLINES | BioNTech vs. Southwest Airlines Co | BioNTech vs. Hanison Construction Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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