Correlation Between BeiGene and BIONTECH
Can any of the company-specific risk be diversified away by investing in both BeiGene 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 BeiGene and BIONTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BeiGene and BIONTECH SE DRN, you can compare the effects of market volatilities on BeiGene 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 BeiGene with a short position of BIONTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and BIONTECH.
Diversification Opportunities for BeiGene and BIONTECH
Very weak diversification
The 3 months correlation between BeiGene and BIONTECH is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and BIONTECH SE DRN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIONTECH SE DRN and BeiGene 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 BeiGene 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 DRN has no effect on the direction of BeiGene i.e., BeiGene and BIONTECH go up and down completely randomly.
Pair Corralation between BeiGene and BIONTECH
Assuming the 90 days trading horizon BeiGene is expected to generate 1.03 times more return on investment than BIONTECH. However, BeiGene is 1.03 times more volatile than BIONTECH SE DRN. It trades about 0.03 of its potential returns per unit of risk. BIONTECH SE DRN is currently generating about 0.0 per unit of risk. If you would invest 3,845 in BeiGene on August 28, 2024 and sell it today you would earn a total of 691.00 from holding BeiGene or generate 17.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. BIONTECH SE DRN
Performance |
| Timeline |
| BeiGene |
| BIONTECH SE DRN |
BeiGene and BIONTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and BIONTECH
The main advantage of trading using opposite BeiGene and BIONTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene 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.| BeiGene vs. Brpr Corporate Offices | BeiGene vs. salesforce inc | BeiGene vs. GP Investments | BeiGene vs. Cognizant Technology Solutions |
| BIONTECH vs. Fras le SA | BIONTECH vs. Clave Indices De | BIONTECH vs. BTG Pactual Logstica | BIONTECH vs. Telefonaktiebolaget LM Ericsson |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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