Correlation Between IMAC Holdings and BioNTech
Can any of the company-specific risk be diversified away by investing in both IMAC Holdings and BioNTech 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 IMAC Holdings and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMAC Holdings and BioNTech SE, you can compare the effects of market volatilities on IMAC Holdings and BioNTech 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 IMAC Holdings with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAC Holdings and BioNTech.
Diversification Opportunities for IMAC Holdings and BioNTech
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAC and BioNTech is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding IMAC Holdings and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and IMAC Holdings 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 IMAC Holdings are associated (or correlated) with BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of IMAC Holdings i.e., IMAC Holdings and BioNTech go up and down completely randomly.
Pair Corralation between IMAC Holdings and BioNTech
Given the investment horizon of 90 days IMAC Holdings is expected to under-perform the BioNTech. In addition to that, IMAC Holdings is 1.91 times more volatile than BioNTech SE. It trades about -0.12 of its total potential returns per unit of risk. BioNTech SE is currently generating about 0.06 per unit of volatility. If you would invest 9,410 in BioNTech SE on August 25, 2024 and sell it today you would earn a total of 1,903 from holding BioNTech SE or generate 20.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IMAC Holdings vs. BioNTech SE
Performance |
| Timeline |
| IMAC Holdings |
| BioNTech SE |
IMAC Holdings and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAC Holdings and BioNTech
The main advantage of trading using opposite IMAC Holdings and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAC Holdings position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech's long position.| IMAC Holdings vs. Addus HomeCare | IMAC Holdings vs. Morningstar Unconstrained Allocation | IMAC Holdings vs. SEI Investments | IMAC Holdings vs. Goosehead Insurance |
| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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