Correlation Between Blackstone Loan and BioNTech
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan 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 Blackstone Loan and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Loan Financing and BioNTech SE, you can compare the effects of market volatilities on Blackstone Loan 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 Blackstone Loan with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and BioNTech.
Diversification Opportunities for Blackstone Loan and BioNTech
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blackstone and BioNTech is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Blackstone Loan 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 Blackstone Loan Financing 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 Blackstone Loan i.e., Blackstone Loan and BioNTech go up and down completely randomly.
Pair Corralation between Blackstone Loan and BioNTech
Assuming the 90 days trading horizon Blackstone Loan is expected to generate 1.09 times less return on investment than BioNTech. But when comparing it to its historical volatility, Blackstone Loan Financing is 2.6 times less risky than BioNTech. It trades about 0.13 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10,062 in BioNTech SE on September 5, 2024 and sell it today you would earn a total of 1,666 from holding BioNTech SE or generate 16.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Blackstone Loan Financing vs. BioNTech SE
Performance |
| Timeline |
| Blackstone Loan Financing |
| BioNTech SE |
Blackstone Loan and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and BioNTech
The main advantage of trading using opposite Blackstone Loan and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan 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.| Blackstone Loan vs. Samsung Electronics Co | Blackstone Loan vs. Samsung Electronics Co | Blackstone Loan vs. Hyundai Motor | Blackstone Loan vs. Toyota Motor Corp |
| BioNTech vs. Blackstone Loan Financing | BioNTech vs. PPHE Hotel Group | BioNTech vs. Europa Metals | BioNTech vs. Fulcrum Metals PLC |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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