Correlation Between Beazer Homes and BioNTech
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By analyzing existing cross correlation between Beazer Homes USA and BioNTech SE, you can compare the effects of market volatilities on Beazer Homes 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 Beazer Homes with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beazer Homes and BioNTech.
Diversification Opportunities for Beazer Homes and BioNTech
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beazer and BioNTech is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Beazer Homes USA and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Beazer Homes 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 Beazer Homes USA 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 Beazer Homes i.e., Beazer Homes and BioNTech go up and down completely randomly.
Pair Corralation between Beazer Homes and BioNTech
Assuming the 90 days trading horizon Beazer Homes USA is expected to generate 1.21 times more return on investment than BioNTech. However, Beazer Homes is 1.21 times more volatile than BioNTech SE. It trades about 0.07 of its potential returns per unit of risk. BioNTech SE is currently generating about -0.02 per unit of risk. If you would invest 1,280 in Beazer Homes USA on August 25, 2024 and sell it today you would earn a total of 1,740 from holding Beazer Homes USA or generate 135.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Beazer Homes USA vs. BioNTech SE
Performance |
| Timeline |
| Beazer Homes USA |
| BioNTech SE |
Beazer Homes and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beazer Homes and BioNTech
The main advantage of trading using opposite Beazer Homes and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beazer Homes 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.| Beazer Homes vs. Safety Insurance Group | Beazer Homes vs. ECHO INVESTMENT ZY | Beazer Homes vs. HANOVER INSURANCE | Beazer Homes vs. MSAD INSURANCE |
| BioNTech vs. Beazer Homes USA | BioNTech vs. Taylor Morrison Home | BioNTech vs. Hisense Home Appliances | BioNTech vs. Autohome ADR |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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