Correlation Between Biomea Fusion and BioNTech
Can any of the company-specific risk be diversified away by investing in both Biomea Fusion 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 Biomea Fusion and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomea Fusion and BioNTech SE, you can compare the effects of market volatilities on Biomea Fusion 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 Biomea Fusion with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomea Fusion and BioNTech.
Diversification Opportunities for Biomea Fusion and BioNTech
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Biomea and BioNTech is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Biomea Fusion and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Biomea Fusion 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 Biomea Fusion 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 Biomea Fusion i.e., Biomea Fusion and BioNTech go up and down completely randomly.
Pair Corralation between Biomea Fusion and BioNTech
If you would invest (100.00) in Biomea Fusion on August 26, 2024 and sell it today you would earn a total of 100.00 from holding Biomea Fusion or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Biomea Fusion vs. BioNTech SE
Performance |
| Timeline |
| Biomea Fusion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BioNTech SE |
Biomea Fusion and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomea Fusion and BioNTech
The main advantage of trading using opposite Biomea Fusion and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomea Fusion 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.| Biomea Fusion vs. Edgewise Therapeutics | Biomea Fusion vs. Werewolf Therapeutics | Biomea Fusion vs. Cullinan Oncology LLC | Biomea Fusion vs. Design Therapeutics |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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