Correlation Between BioNTech and Definitive Healthcare
Can any of the company-specific risk be diversified away by investing in both BioNTech and Definitive Healthcare 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 Definitive Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Definitive Healthcare Corp, you can compare the effects of market volatilities on BioNTech and Definitive Healthcare 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 Definitive Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Definitive Healthcare.
Diversification Opportunities for BioNTech and Definitive Healthcare
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BioNTech and Definitive is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Definitive Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Definitive Healthcare 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 Definitive Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Definitive Healthcare has no effect on the direction of BioNTech i.e., BioNTech and Definitive Healthcare go up and down completely randomly.
Pair Corralation between BioNTech and Definitive Healthcare
Given the investment horizon of 90 days BioNTech SE is expected to generate 0.75 times more return on investment than Definitive Healthcare. However, BioNTech SE is 1.33 times less risky than Definitive Healthcare. It trades about 0.05 of its potential returns per unit of risk. Definitive Healthcare Corp is currently generating about 0.0 per unit of risk. If you would invest 10,250 in BioNTech SE on September 3, 2024 and sell it today you would earn a total of 1,589 from holding BioNTech SE or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Definitive Healthcare Corp
Performance |
| Timeline |
| BioNTech SE |
| Definitive Healthcare |
BioNTech and Definitive Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Definitive Healthcare
The main advantage of trading using opposite BioNTech and Definitive Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Definitive Healthcare 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 Definitive Healthcare will offset losses from the drop in Definitive Healthcare's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Definitive Healthcare vs. National Research Corp | Definitive Healthcare vs. Evolent Health | Definitive Healthcare vs. Simulations Plus | Definitive Healthcare vs. Privia Health Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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