Correlation Between BIONTECH and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both BIONTECH and Uber 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 Uber 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 Uber Technologies, you can compare the effects of market volatilities on BIONTECH and Uber 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIONTECH and Uber Technologies.
Diversification Opportunities for BIONTECH and Uber Technologies
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BIONTECH and Uber is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BIONTECH SE DRN and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of BIONTECH i.e., BIONTECH and Uber Technologies go up and down completely randomly.
Pair Corralation between BIONTECH and Uber Technologies
Assuming the 90 days trading horizon BIONTECH SE DRN is expected to generate 1.11 times more return on investment than Uber Technologies. However, BIONTECH is 1.11 times more volatile than Uber Technologies. It trades about 0.07 of its potential returns per unit of risk. Uber Technologies is currently generating about 0.07 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIONTECH SE DRN vs. Uber Technologies
Performance |
| Timeline |
| BIONTECH SE DRN |
| Uber Technologies |
BIONTECH and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIONTECH and Uber Technologies
The main advantage of trading using opposite BIONTECH and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIONTECH position performs unexpectedly, Uber 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| BIONTECH vs. Lupatech SA | BIONTECH vs. Bio Techne | BIONTECH vs. Take Two Interactive Software | BIONTECH vs. Paycom Software |
| Uber Technologies vs. Metalrgica Riosulense SA | Uber Technologies vs. Mitsubishi UFJ Financial | Uber Technologies vs. Tyson Foods | Uber Technologies vs. Sumitomo Mitsui Financial |
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 Directory module to find actively traded commodities issued by global exchanges.
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