Correlation Between BioNTech and Highway Holdings
Can any of the company-specific risk be diversified away by investing in both BioNTech and Highway Holdings 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 Highway Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Highway Holdings Limited, you can compare the effects of market volatilities on BioNTech and Highway Holdings 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 Highway Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Highway Holdings.
Diversification Opportunities for BioNTech and Highway Holdings
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between BioNTech and Highway is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Highway Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highway Holdings 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 Highway Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highway Holdings has no effect on the direction of BioNTech i.e., BioNTech and Highway Holdings go up and down completely randomly.
Pair Corralation between BioNTech and Highway Holdings
Given the investment horizon of 90 days BioNTech SE is expected to generate 3.2 times more return on investment than Highway Holdings. However, BioNTech is 3.2 times more volatile than Highway Holdings Limited. It trades about 0.08 of its potential returns per unit of risk. Highway Holdings Limited is currently generating about 0.15 per unit of risk. If you would invest 11,310 in BioNTech SE on September 1, 2024 and sell it today you would earn a total of 529.00 from holding BioNTech SE or generate 4.68% 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. Highway Holdings Limited
Performance |
| Timeline |
| BioNTech SE |
| Highway Holdings |
BioNTech and Highway Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Highway Holdings
The main advantage of trading using opposite BioNTech and Highway Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Highway Holdings 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 Highway Holdings will offset losses from the drop in Highway Holdings' long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Highway Holdings vs. Deswell Industries | Highway Holdings vs. Euro Tech Holdings | Highway Holdings vs. China Natural Resources | Highway Holdings vs. Arts Way Manufacturing Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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