Correlation Between BioNTech and China Aircraft
Can any of the company-specific risk be diversified away by investing in both BioNTech and China Aircraft 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 China Aircraft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and China Aircraft Leasing, you can compare the effects of market volatilities on BioNTech and China Aircraft 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 China Aircraft. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and China Aircraft.
Diversification Opportunities for BioNTech and China Aircraft
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BioNTech and China is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and China Aircraft Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aircraft Leasing 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 China Aircraft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aircraft Leasing has no effect on the direction of BioNTech i.e., BioNTech and China Aircraft go up and down completely randomly.
Pair Corralation between BioNTech and China Aircraft
If you would invest 11,326 in BioNTech SE on August 29, 2024 and sell it today you would earn a total of 528.00 from holding BioNTech SE or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. China Aircraft Leasing
Performance |
| Timeline |
| BioNTech SE |
| China Aircraft Leasing |
BioNTech and China Aircraft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and China Aircraft
The main advantage of trading using opposite BioNTech and China Aircraft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, China Aircraft 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 China Aircraft will offset losses from the drop in China Aircraft's long position.| BioNTech vs. Eliem Therapeutics | BioNTech vs. Scpharmaceuticals | BioNTech vs. Milestone Pharmaceuticals | BioNTech vs. Seres Therapeutics |
| China Aircraft vs. Senmiao Technology | China Aircraft vs. BCE Inc | China Aircraft vs. Olympic Steel | China Aircraft vs. WiMi Hologram Cloud |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |