Correlation Between BIONTECH and Global X
Can any of the company-specific risk be diversified away by investing in both BIONTECH and Global X 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 Global X 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 Global X Funds, you can compare the effects of market volatilities on BIONTECH and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIONTECH and Global X.
Diversification Opportunities for BIONTECH and Global X
Very weak diversification
The 3 months correlation between BIONTECH and Global is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding BIONTECH SE DRN and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of BIONTECH i.e., BIONTECH and Global X go up and down completely randomly.
Pair Corralation between BIONTECH and Global X
Assuming the 90 days trading horizon BIONTECH SE DRN is expected to under-perform the Global X. In addition to that, BIONTECH is 1.71 times more volatile than Global X Funds. It trades about -0.08 of its total potential returns per unit of risk. Global X Funds is currently generating about -0.07 per unit of volatility. If you would invest 4,865 in Global X Funds on November 27, 2024 and sell it today you would lose (115.00) from holding Global X Funds or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIONTECH SE DRN vs. Global X Funds
Performance |
| Timeline |
| BIONTECH SE DRN |
| Global X Funds |
BIONTECH and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIONTECH and Global X
The main advantage of trading using opposite BIONTECH and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIONTECH position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| BIONTECH vs. Live Nation Entertainment, | BIONTECH vs. Warner Music Group | BIONTECH vs. Darden Restaurants, | BIONTECH vs. Caesars Entertainment, |
| Global X vs. STMicroelectronics NV | Global X vs. Citizens Financial Group, | Global X vs. Ameriprise Financial | Global X vs. Broadridge Financial Solutions, |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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