Correlation Between BioNTech and Huaizhong Health
Can any of the company-specific risk be diversified away by investing in both BioNTech and Huaizhong Health 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 Huaizhong Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Huaizhong Health Group, you can compare the effects of market volatilities on BioNTech and Huaizhong Health 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 Huaizhong Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Huaizhong Health.
Diversification Opportunities for BioNTech and Huaizhong Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BioNTech and Huaizhong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Huaizhong Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaizhong Health 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 Huaizhong Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaizhong Health has no effect on the direction of BioNTech i.e., BioNTech and Huaizhong Health go up and down completely randomly.
Pair Corralation between BioNTech and Huaizhong Health
If you would invest 9,505 in BioNTech SE on November 3, 2024 and sell it today you would earn a total of 2,872 from holding BioNTech SE or generate 30.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
BioNTech SE vs. Huaizhong Health Group
Performance |
| Timeline |
| BioNTech SE |
| Huaizhong Health |
BioNTech and Huaizhong Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Huaizhong Health
The main advantage of trading using opposite BioNTech and Huaizhong Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Huaizhong Health 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 Huaizhong Health will offset losses from the drop in Huaizhong Health's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Huaizhong Health vs. Senmiao Technology | Huaizhong Health vs. Alignment Healthcare LLC | Huaizhong Health vs. Allient | Huaizhong Health vs. Kinsale Capital Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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