Correlation Between BioNTech and Hertz Global
Can any of the company-specific risk be diversified away by investing in both BioNTech and Hertz Global 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 Hertz Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Hertz Global Holdings, you can compare the effects of market volatilities on BioNTech and Hertz Global 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 Hertz Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Hertz Global.
Diversification Opportunities for BioNTech and Hertz Global
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BioNTech and Hertz is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Hertz Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hertz Global 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 Hertz Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hertz Global Holdings has no effect on the direction of BioNTech i.e., BioNTech and Hertz Global go up and down completely randomly.
Pair Corralation between BioNTech and Hertz Global
Given the investment horizon of 90 days BioNTech is expected to generate 1.51 times less return on investment than Hertz Global. But when comparing it to its historical volatility, BioNTech SE is 1.68 times less risky than Hertz Global. It trades about 0.08 of its potential returns per unit of risk. Hertz Global Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 326.00 in Hertz Global Holdings on September 12, 2024 and sell it today you would earn a total of 118.50 from holding Hertz Global Holdings or generate 36.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Hertz Global Holdings
Performance |
| Timeline |
| BioNTech SE |
| Hertz Global Holdings |
BioNTech and Hertz Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Hertz Global
The main advantage of trading using opposite BioNTech and Hertz Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Hertz Global 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 Hertz Global will offset losses from the drop in Hertz Global's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Hertz Global vs. United Rentals | Hertz Global vs. Ryder System | Hertz Global vs. Herc Holdings | Hertz Global vs. Hertz Global Hldgs |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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