Correlation Between BioNTech and Calmare Therapeutics
Can any of the company-specific risk be diversified away by investing in both BioNTech and Calmare Therapeutics 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 Calmare Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Calmare Therapeutics, you can compare the effects of market volatilities on BioNTech and Calmare Therapeutics 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 Calmare Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Calmare Therapeutics.
Diversification Opportunities for BioNTech and Calmare Therapeutics
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between BioNTech and Calmare is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Calmare Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calmare Therapeutics 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 Calmare Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calmare Therapeutics has no effect on the direction of BioNTech i.e., BioNTech and Calmare Therapeutics go up and down completely randomly.
Pair Corralation between BioNTech and Calmare Therapeutics
Given the investment horizon of 90 days BioNTech SE is expected to generate 0.1 times more return on investment than Calmare Therapeutics. However, BioNTech SE is 10.18 times less risky than Calmare Therapeutics. It trades about -0.01 of its potential returns per unit of risk. Calmare Therapeutics is currently generating about -0.5 per unit of risk. If you would invest 15,311 in BioNTech SE on September 19, 2024 and sell it today you would lose (4,150) from holding BioNTech SE or give up 27.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.81% |
| Values | Daily Returns |
BioNTech SE vs. Calmare Therapeutics
Performance |
| Timeline |
| BioNTech SE |
| Calmare Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BioNTech and Calmare Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Calmare Therapeutics
The main advantage of trading using opposite BioNTech and Calmare Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Calmare Therapeutics 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 Calmare Therapeutics will offset losses from the drop in Calmare Therapeutics' long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Calmare Therapeutics vs. BioNTech SE | Calmare Therapeutics vs. Teleflex Incorporated | Calmare Therapeutics vs. Modine Manufacturing | Calmare Therapeutics vs. U Power Limited |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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