Correlation Between BioCardia and BioNTech
Can any of the company-specific risk be diversified away by investing in both BioCardia 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 BioCardia and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioCardia and BioNTech SE, you can compare the effects of market volatilities on BioCardia 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 BioCardia with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioCardia and BioNTech.
Diversification Opportunities for BioCardia and BioNTech
Good diversification
The 3 months correlation between BioCardia and BioNTech is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding BioCardia and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and BioCardia 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 BioCardia 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 BioCardia i.e., BioCardia and BioNTech go up and down completely randomly.
Pair Corralation between BioCardia and BioNTech
If you would invest 10,897 in BioNTech SE on September 4, 2024 and sell it today you would earn a total of 823.00 from holding BioNTech SE or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BioCardia vs. BioNTech SE
Performance |
| Timeline |
| BioCardia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BioNTech SE |
BioCardia and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioCardia and BioNTech
The main advantage of trading using opposite BioCardia and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioCardia 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.The idea behind BioCardia and BioNTech SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |