Correlation Between BIONTECH and Apartment Investment
Can any of the company-specific risk be diversified away by investing in both BIONTECH and Apartment Investment 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 BIONTECH and Apartment Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIONTECH SE DRN and Apartment Investment and, you can compare the effects of market volatilities on BIONTECH and Apartment Investment 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 BIONTECH with a short position of Apartment Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIONTECH and Apartment Investment.
Diversification Opportunities for BIONTECH and Apartment Investment
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BIONTECH and Apartment is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding BIONTECH SE DRN and Apartment Investment and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apartment Investment and and BIONTECH 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 BIONTECH SE DRN are associated (or correlated) with Apartment Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apartment Investment and has no effect on the direction of BIONTECH i.e., BIONTECH and Apartment Investment go up and down completely randomly.
Pair Corralation between BIONTECH and Apartment Investment
Assuming the 90 days trading horizon BIONTECH is expected to generate 1.41 times less return on investment than Apartment Investment. In addition to that, BIONTECH is 1.38 times more volatile than Apartment Investment and. It trades about 0.06 of its total potential returns per unit of risk. Apartment Investment and is currently generating about 0.12 per unit of volatility. If you would invest 3,027 in Apartment Investment and on September 1, 2024 and sell it today you would earn a total of 2,458 from holding Apartment Investment and or generate 81.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIONTECH SE DRN vs. Apartment Investment and
Performance |
| Timeline |
| BIONTECH SE DRN |
| Apartment Investment and |
BIONTECH and Apartment Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIONTECH and Apartment Investment
The main advantage of trading using opposite BIONTECH and Apartment Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIONTECH position performs unexpectedly, Apartment Investment 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 Apartment Investment will offset losses from the drop in Apartment Investment's long position.| BIONTECH vs. Fras le SA | BIONTECH vs. Western Digital | BIONTECH vs. Energisa SA | BIONTECH vs. Clave Indices De |
| Apartment Investment vs. Fras le SA | Apartment Investment vs. Energisa SA | Apartment Investment vs. Clave Indices De | Apartment Investment vs. BTG Pactual Logstica |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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