Correlation Between BioNTech and KNOT Offshore
Can any of the company-specific risk be diversified away by investing in both BioNTech and KNOT Offshore 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 KNOT Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and KNOT Offshore Partners, you can compare the effects of market volatilities on BioNTech and KNOT Offshore 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 KNOT Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and KNOT Offshore.
Diversification Opportunities for BioNTech and KNOT Offshore
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioNTech and KNOT is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and KNOT Offshore Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KNOT Offshore Partners 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 KNOT Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KNOT Offshore Partners has no effect on the direction of BioNTech i.e., BioNTech and KNOT Offshore go up and down completely randomly.
Pair Corralation between BioNTech and KNOT Offshore
Given the investment horizon of 90 days BioNTech SE is expected to generate 1.01 times more return on investment than KNOT Offshore. However, BioNTech is 1.01 times more volatile than KNOT Offshore Partners. It trades about 0.04 of its potential returns per unit of risk. KNOT Offshore Partners is currently generating about 0.02 per unit of risk. If you would invest 9,971 in BioNTech SE on September 1, 2024 and sell it today you would earn a total of 1,868 from holding BioNTech SE or generate 18.73% 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. KNOT Offshore Partners
Performance |
| Timeline |
| BioNTech SE |
| KNOT Offshore Partners |
BioNTech and KNOT Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and KNOT Offshore
The main advantage of trading using opposite BioNTech and KNOT Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, KNOT Offshore 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 KNOT Offshore will offset losses from the drop in KNOT Offshore's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| KNOT Offshore vs. USA Compression Partners | KNOT Offshore vs. Dynagas LNG Partners | KNOT Offshore vs. Crossamerica Partners LP | KNOT Offshore vs. Delek Logistics Partners |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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