Correlation Between BioNTech and CXApp
Can any of the company-specific risk be diversified away by investing in both BioNTech and CXApp 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 CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and CXApp Inc, you can compare the effects of market volatilities on BioNTech and CXApp 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 CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and CXApp.
Diversification Opportunities for BioNTech and CXApp
Good diversification
The 3 months correlation between BioNTech and CXApp is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc 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 CXApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CXApp Inc has no effect on the direction of BioNTech i.e., BioNTech and CXApp go up and down completely randomly.
Pair Corralation between BioNTech and CXApp
Given the investment horizon of 90 days BioNTech is expected to generate 13.16 times less return on investment than CXApp. But when comparing it to its historical volatility, BioNTech SE is 5.57 times less risky than CXApp. It trades about 0.03 of its potential returns per unit of risk. CXApp Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7.95 in CXApp Inc on September 14, 2024 and sell it today you would earn a total of 12.05 from holding CXApp Inc or generate 151.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
BioNTech SE vs. CXApp Inc
Performance |
| Timeline |
| BioNTech SE |
| CXApp Inc |
BioNTech and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and CXApp
The main advantage of trading using opposite BioNTech and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, CXApp 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 CXApp will offset losses from the drop in CXApp's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| CXApp vs. Dave Warrants | CXApp vs. Aquagold International | CXApp vs. Morningstar Unconstrained Allocation | CXApp vs. Thrivent High Yield |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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