Correlation Between BioNTech and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both BioNTech and Agilent Technologies 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 BioNTech and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Agilent Technologies, you can compare the effects of market volatilities on BioNTech and Agilent Technologies 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 BioNTech with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Agilent Technologies.
Diversification Opportunities for BioNTech and Agilent Technologies
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BioNTech and Agilent is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and BioNTech 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 BioNTech SE are associated (or correlated) with Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of BioNTech i.e., BioNTech and Agilent Technologies go up and down completely randomly.
Pair Corralation between BioNTech and Agilent Technologies
Given the investment horizon of 90 days BioNTech SE is expected to generate 1.77 times more return on investment than Agilent Technologies. However, BioNTech is 1.77 times more volatile than Agilent Technologies. It trades about 0.07 of its potential returns per unit of risk. Agilent Technologies is currently generating about 0.02 per unit of risk. If you would invest 8,801 in BioNTech SE on September 18, 2024 and sell it today you would earn a total of 2,938 from holding BioNTech SE or generate 33.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Agilent Technologies
Performance |
| Timeline |
| BioNTech SE |
| Agilent Technologies |
BioNTech and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Agilent Technologies
The main advantage of trading using opposite BioNTech and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Agilent Technologies 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 Agilent Technologies will offset losses from the drop in Agilent Technologies' long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Agilent Technologies vs. Molecular Partners AG | Agilent Technologies vs. MediciNova | Agilent Technologies vs. Anebulo Pharmaceuticals | Agilent Technologies vs. Shattuck Labs |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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