Correlation Between BioNTech and Elutia
Can any of the company-specific risk be diversified away by investing in both BioNTech and Elutia 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 Elutia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Elutia Inc, you can compare the effects of market volatilities on BioNTech and Elutia 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 Elutia. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Elutia.
Diversification Opportunities for BioNTech and Elutia
Average diversification
The 3 months correlation between BioNTech and Elutia is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Elutia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elutia 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 Elutia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elutia Inc has no effect on the direction of BioNTech i.e., BioNTech and Elutia go up and down completely randomly.
Pair Corralation between BioNTech and Elutia
Given the investment horizon of 90 days BioNTech SE is expected to generate 0.26 times more return on investment than Elutia. However, BioNTech SE is 3.79 times less risky than Elutia. It trades about 0.05 of its potential returns per unit of risk. Elutia Inc is currently generating about -0.06 per unit of risk. If you would invest 12,069 in BioNTech SE on October 13, 2024 and sell it today you would earn a total of 216.00 from holding BioNTech SE or generate 1.79% 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. Elutia Inc
Performance |
| Timeline |
| BioNTech SE |
| Elutia Inc |
BioNTech and Elutia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Elutia
The main advantage of trading using opposite BioNTech and Elutia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Elutia 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 Elutia will offset losses from the drop in Elutia's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Elutia vs. Western Acquisition Ventures | Elutia vs. Aldel Financial II | Elutia vs. Allegion PLC | Elutia vs. Emerson Electric |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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