Correlation Between BIONTECH and Equinix
Can any of the company-specific risk be diversified away by investing in both BIONTECH and Equinix 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 Equinix 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 Equinix, you can compare the effects of market volatilities on BIONTECH and Equinix 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 Equinix. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIONTECH and Equinix.
Diversification Opportunities for BIONTECH and Equinix
Poor diversification
The 3 months correlation between BIONTECH and Equinix is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding BIONTECH SE DRN and Equinix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinix 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 Equinix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinix has no effect on the direction of BIONTECH i.e., BIONTECH and Equinix go up and down completely randomly.
Pair Corralation between BIONTECH and Equinix
Assuming the 90 days trading horizon BIONTECH SE DRN is expected to under-perform the Equinix. In addition to that, BIONTECH is 1.63 times more volatile than Equinix. It trades about -0.14 of its total potential returns per unit of risk. Equinix is currently generating about -0.01 per unit of volatility. If you would invest 6,700 in Equinix on December 1, 2024 and sell it today you would lose (43.00) from holding Equinix or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIONTECH SE DRN vs. Equinix
Performance |
| Timeline |
| BIONTECH SE DRN |
| Equinix |
BIONTECH and Equinix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIONTECH and Equinix
The main advantage of trading using opposite BIONTECH and Equinix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIONTECH position performs unexpectedly, Equinix 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 Equinix will offset losses from the drop in Equinix's long position.| BIONTECH vs. Ares Management | BIONTECH vs. Apartment Investment and | BIONTECH vs. Paycom Software | BIONTECH vs. Annaly Capital Management, |
| Equinix vs. Autohome | Equinix vs. SK Telecom Co, | Equinix vs. Academy Sports and | Equinix vs. GP Investments |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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