Correlation Between BIONTECH and Palantir Technologies
Can any of the company-specific risk be diversified away by investing in both BIONTECH and Palantir Technologies 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 Palantir Technologies 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 Palantir Technologies, you can compare the effects of market volatilities on BIONTECH and Palantir Technologies 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 Palantir Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIONTECH and Palantir Technologies.
Diversification Opportunities for BIONTECH and Palantir Technologies
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BIONTECH and Palantir is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding BIONTECH SE DRN and Palantir Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palantir Technologies 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 Palantir Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palantir Technologies has no effect on the direction of BIONTECH i.e., BIONTECH and Palantir Technologies go up and down completely randomly.
Pair Corralation between BIONTECH and Palantir Technologies
Assuming the 90 days trading horizon BIONTECH SE DRN is expected to under-perform the Palantir Technologies. But the stock apears to be less risky and, when comparing its historical volatility, BIONTECH SE DRN is 1.53 times less risky than Palantir Technologies. The stock trades about -0.01 of its potential returns per unit of risk. The Palantir Technologies is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,326 in Palantir Technologies on August 25, 2024 and sell it today you would earn a total of 11,039 from holding Palantir Technologies or generate 832.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
BIONTECH SE DRN vs. Palantir Technologies
Performance |
| Timeline |
| BIONTECH SE DRN |
| Palantir Technologies |
BIONTECH and Palantir Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIONTECH and Palantir Technologies
The main advantage of trading using opposite BIONTECH and Palantir Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIONTECH position performs unexpectedly, Palantir Technologies 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 Palantir Technologies will offset losses from the drop in Palantir Technologies' long position.| BIONTECH vs. Fras le SA | BIONTECH vs. Clave Indices De | BIONTECH vs. BTG Pactual Logstica | BIONTECH vs. Telefonaktiebolaget LM Ericsson |
| Palantir Technologies vs. Fras le SA | Palantir Technologies vs. Western Digital | Palantir Technologies vs. Clave Indices De | Palantir Technologies 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets |