Correlation Between BioNTech and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both BioNTech and Acumen Pharmaceuticals 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 Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Acumen Pharmaceuticals, you can compare the effects of market volatilities on BioNTech and Acumen Pharmaceuticals 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 Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Acumen Pharmaceuticals.
Diversification Opportunities for BioNTech and Acumen Pharmaceuticals
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between BioNTech and Acumen is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals 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 Acumen Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acumen Pharmaceuticals has no effect on the direction of BioNTech i.e., BioNTech and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between BioNTech and Acumen Pharmaceuticals
Given the investment horizon of 90 days BioNTech SE is expected to generate 0.58 times more return on investment than Acumen Pharmaceuticals. However, BioNTech SE is 1.72 times less risky than Acumen Pharmaceuticals. It trades about 0.05 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.01 per unit of risk. If you would invest 9,451 in BioNTech SE on August 29, 2024 and sell it today you would earn a total of 2,530 from holding BioNTech SE or generate 26.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| BioNTech SE |
| Acumen Pharmaceuticals |
BioNTech and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Acumen Pharmaceuticals
The main advantage of trading using opposite BioNTech and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Acumen Pharmaceuticals 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 Acumen Pharmaceuticals will offset losses from the drop in Acumen Pharmaceuticals' long position.The idea behind BioNTech SE and Acumen Pharmaceuticals 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.| Acumen Pharmaceuticals vs. Bright Minds Biosciences | Acumen Pharmaceuticals vs. HP Inc | Acumen Pharmaceuticals vs. Intel | Acumen Pharmaceuticals vs. Chevron Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |