Correlation Between BIONTECH and Abbott Laboratories
Can any of the company-specific risk be diversified away by investing in both BIONTECH and Abbott Laboratories 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 Abbott Laboratories 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 Abbott Laboratories, you can compare the effects of market volatilities on BIONTECH and Abbott Laboratories 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 Abbott Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIONTECH and Abbott Laboratories.
Diversification Opportunities for BIONTECH and Abbott Laboratories
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BIONTECH and Abbott is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding BIONTECH SE DRN and Abbott Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abbott Laboratories 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 Abbott Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abbott Laboratories has no effect on the direction of BIONTECH i.e., BIONTECH and Abbott Laboratories go up and down completely randomly.
Pair Corralation between BIONTECH and Abbott Laboratories
Assuming the 90 days trading horizon BIONTECH SE DRN is expected to generate 1.56 times more return on investment than Abbott Laboratories. However, BIONTECH is 1.56 times more volatile than Abbott Laboratories. It trades about 0.07 of its potential returns per unit of risk. Abbott Laboratories is currently generating about 0.09 per unit of risk. If you would invest 3,102 in BIONTECH SE DRN on September 2, 2024 and sell it today you would earn a total of 1,351 from holding BIONTECH SE DRN or generate 43.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.6% |
| Values | Daily Returns |
BIONTECH SE DRN vs. Abbott Laboratories
Performance |
| Timeline |
| BIONTECH SE DRN |
| Abbott Laboratories |
BIONTECH and Abbott Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIONTECH and Abbott Laboratories
The main advantage of trading using opposite BIONTECH and Abbott Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIONTECH position performs unexpectedly, Abbott Laboratories 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 Abbott Laboratories will offset losses from the drop in Abbott Laboratories' long position.| BIONTECH vs. Lupatech SA | BIONTECH vs. Bio Techne | BIONTECH vs. Take Two Interactive Software | BIONTECH vs. Paycom Software |
| Abbott Laboratories vs. The Home Depot | Abbott Laboratories vs. Zoom Video Communications | Abbott Laboratories vs. Broadcom | Abbott Laboratories vs. New Oriental Education |
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.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |