Correlation Between GX AI and BIONTECH
Can any of the company-specific risk be diversified away by investing in both GX AI 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 GX AI and BIONTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GX AI TECH and BIONTECH SE DRN, you can compare the effects of market volatilities on GX AI 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 GX AI with a short position of BIONTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of GX AI and BIONTECH.
Diversification Opportunities for GX AI and BIONTECH
Poor diversification
The 3 months correlation between BAIQ39 and BIONTECH is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding GX AI TECH and BIONTECH SE DRN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIONTECH SE DRN and GX AI 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 GX AI TECH 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 DRN has no effect on the direction of GX AI i.e., GX AI and BIONTECH go up and down completely randomly.
Pair Corralation between GX AI and BIONTECH
Assuming the 90 days trading horizon GX AI TECH is expected to generate 2.1 times more return on investment than BIONTECH. However, GX AI is 2.1 times more volatile than BIONTECH SE DRN. It trades about 0.0 of its potential returns per unit of risk. BIONTECH SE DRN is currently generating about -0.05 per unit of risk. If you would invest 8,160 in GX AI TECH on October 22, 2024 and sell it today you would lose (184.00) from holding GX AI TECH or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
GX AI TECH vs. BIONTECH SE DRN
Performance |
| Timeline |
| GX AI TECH |
| BIONTECH SE DRN |
GX AI and BIONTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GX AI and BIONTECH
The main advantage of trading using opposite GX AI and BIONTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GX AI 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.| GX AI vs. Public Storage | GX AI vs. Take Two Interactive Software | GX AI vs. Fidelity National Information | GX AI vs. Bio Techne |
| BIONTECH vs. Hospital Mater Dei | BIONTECH vs. Universal Health Services, | BIONTECH vs. Clover Health Investments, | BIONTECH vs. Cardinal Health, |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |