Correlation Between BioNTech and Herc Holdings
Can any of the company-specific risk be diversified away by investing in both BioNTech and Herc 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 Herc 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 Herc Holdings, you can compare the effects of market volatilities on BioNTech and Herc 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 Herc Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Herc Holdings.
Diversification Opportunities for BioNTech and Herc Holdings
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between BioNTech and Herc is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Herc Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herc 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 Herc Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Herc Holdings has no effect on the direction of BioNTech i.e., BioNTech and Herc Holdings go up and down completely randomly.
Pair Corralation between BioNTech and Herc Holdings
Given the investment horizon of 90 days BioNTech SE is expected to generate 1.86 times more return on investment than Herc Holdings. However, BioNTech is 1.86 times more volatile than Herc Holdings. It trades about 0.13 of its potential returns per unit of risk. Herc Holdings is currently generating about -0.18 per unit of risk. If you would invest 10,873 in BioNTech SE on September 12, 2024 and sell it today you would earn a total of 1,043 from holding BioNTech SE or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Herc Holdings
Performance |
| Timeline |
| BioNTech SE |
| Herc Holdings |
BioNTech and Herc Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Herc Holdings
The main advantage of trading using opposite BioNTech and Herc Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Herc 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 Herc Holdings will offset losses from the drop in Herc Holdings' long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Herc Holdings vs. McGrath RentCorp | Herc Holdings vs. Alta Equipment Group | Herc Holdings vs. Custom Truck One | Herc Holdings vs. GATX Corporation |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |