Correlation Between BIONTECH and Under Armour
Can any of the company-specific risk be diversified away by investing in both BIONTECH and Under Armour 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 Under Armour 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 Under Armour, you can compare the effects of market volatilities on BIONTECH and Under Armour 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 Under Armour. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIONTECH and Under Armour.
Diversification Opportunities for BIONTECH and Under Armour
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BIONTECH and Under is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding BIONTECH SE DRN and Under Armour in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour 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 Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour has no effect on the direction of BIONTECH i.e., BIONTECH and Under Armour go up and down completely randomly.
Pair Corralation between BIONTECH and Under Armour
Assuming the 90 days trading horizon BIONTECH SE DRN is expected to under-perform the Under Armour. But the stock apears to be less risky and, when comparing its historical volatility, BIONTECH SE DRN is 1.32 times less risky than Under Armour. The stock trades about 0.0 of its potential returns per unit of risk. The Under Armour is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,320 in Under Armour on August 30, 2024 and sell it today you would earn a total of 880.00 from holding Under Armour or generate 20.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.0% |
| Values | Daily Returns |
BIONTECH SE DRN vs. Under Armour
Performance |
| Timeline |
| BIONTECH SE DRN |
| Under Armour |
BIONTECH and Under Armour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIONTECH and Under Armour
The main advantage of trading using opposite BIONTECH and Under Armour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIONTECH position performs unexpectedly, Under Armour 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 Under Armour will offset losses from the drop in Under Armour's long position.| BIONTECH vs. Southwest Airlines Co | BIONTECH vs. Micron Technology | BIONTECH vs. Charter Communications | BIONTECH vs. Verizon Communications |
| Under Armour vs. Paycom Software | Under Armour vs. Zoom Video Communications | Under Armour vs. Charter Communications | Under Armour vs. Metalurgica Gerdau SA |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |