Correlation Between BioNTech and Capital Clean
Can any of the company-specific risk be diversified away by investing in both BioNTech and Capital Clean 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 Capital Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Capital Clean Energy, you can compare the effects of market volatilities on BioNTech and Capital Clean 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 Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Capital Clean.
Diversification Opportunities for BioNTech and Capital Clean
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BioNTech and Capital is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy 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 Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of BioNTech i.e., BioNTech and Capital Clean go up and down completely randomly.
Pair Corralation between BioNTech and Capital Clean
Given the investment horizon of 90 days BioNTech is expected to generate 1.64 times less return on investment than Capital Clean. In addition to that, BioNTech is 1.26 times more volatile than Capital Clean Energy. It trades about 0.03 of its total potential returns per unit of risk. Capital Clean Energy is currently generating about 0.07 per unit of volatility. If you would invest 1,354 in Capital Clean Energy on August 25, 2024 and sell it today you would earn a total of 473.00 from holding Capital Clean Energy or generate 34.93% 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. Capital Clean Energy
Performance |
| Timeline |
| BioNTech SE |
| Capital Clean Energy |
BioNTech and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Capital Clean
The main advantage of trading using opposite BioNTech and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Capital Clean vs. VirnetX Holding Corp | Capital Clean vs. Mill City Ventures | Capital Clean vs. Rumble Inc | Capital Clean vs. Chiba Bank Ltd |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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