Correlation Between BioNTech and Codiak BioSciences
Can any of the company-specific risk be diversified away by investing in both BioNTech and Codiak BioSciences 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 Codiak BioSciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Codiak BioSciences, you can compare the effects of market volatilities on BioNTech and Codiak BioSciences 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 Codiak BioSciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Codiak BioSciences.
Diversification Opportunities for BioNTech and Codiak BioSciences
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BioNTech and Codiak is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Codiak BioSciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codiak BioSciences 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 Codiak BioSciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codiak BioSciences has no effect on the direction of BioNTech i.e., BioNTech and Codiak BioSciences go up and down completely randomly.
Pair Corralation between BioNTech and Codiak BioSciences
If you would invest 12,977 in BioNTech SE on November 1, 2024 and sell it today you would lose (889.00) from holding BioNTech SE or give up 6.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BioNTech SE vs. Codiak BioSciences
Performance |
| Timeline |
| BioNTech SE |
| Codiak BioSciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BioNTech and Codiak BioSciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Codiak BioSciences
The main advantage of trading using opposite BioNTech and Codiak BioSciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Codiak BioSciences 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 Codiak BioSciences will offset losses from the drop in Codiak BioSciences' long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Codiak BioSciences vs. Old Republic International | Codiak BioSciences vs. NorthWestern | Codiak BioSciences vs. CapitaLand Investment Limited | Codiak BioSciences vs. Olympic Steel |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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