Correlation Between BioNTech and Blockchain Moon
Can any of the company-specific risk be diversified away by investing in both BioNTech and Blockchain Moon 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 Blockchain Moon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Blockchain Moon Acquisition, you can compare the effects of market volatilities on BioNTech and Blockchain Moon 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 Blockchain Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Blockchain Moon.
Diversification Opportunities for BioNTech and Blockchain Moon
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between BioNTech and Blockchain is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Blockchain Moon Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Moon Acqu 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 Blockchain Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Moon Acqu has no effect on the direction of BioNTech i.e., BioNTech and Blockchain Moon go up and down completely randomly.
Pair Corralation between BioNTech and Blockchain Moon
Given the investment horizon of 90 days BioNTech SE is expected to under-perform the Blockchain Moon. But the stock apears to be less risky and, when comparing its historical volatility, BioNTech SE is 25.26 times less risky than Blockchain Moon. The stock trades about -0.01 of its potential returns per unit of risk. The Blockchain Moon Acquisition is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Blockchain Moon Acquisition on September 3, 2024 and sell it today you would lose (1.80) from holding Blockchain Moon Acquisition or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 13.47% |
| Values | Daily Returns |
BioNTech SE vs. Blockchain Moon Acquisition
Performance |
| Timeline |
| BioNTech SE |
| Blockchain Moon Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BioNTech and Blockchain Moon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Blockchain Moon
The main advantage of trading using opposite BioNTech and Blockchain Moon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Blockchain Moon 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 Blockchain Moon will offset losses from the drop in Blockchain Moon's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Blockchain Moon vs. Sonida Senior Living | Blockchain Moon vs. Omni Health | Blockchain Moon vs. Nabors Industries | Blockchain Moon vs. Teleflex Incorporated |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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