Correlation Between BioNTech and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both BioNTech and Microbot Medical 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 Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Microbot Medical, you can compare the effects of market volatilities on BioNTech and Microbot Medical 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 Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Microbot Medical.
Diversification Opportunities for BioNTech and Microbot Medical
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between BioNTech and Microbot is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical 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 Microbot Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbot Medical has no effect on the direction of BioNTech i.e., BioNTech and Microbot Medical go up and down completely randomly.
Pair Corralation between BioNTech and Microbot Medical
Given the investment horizon of 90 days BioNTech SE is expected to generate 1.1 times more return on investment than Microbot Medical. However, BioNTech is 1.1 times more volatile than Microbot Medical. It trades about 0.03 of its potential returns per unit of risk. Microbot Medical is currently generating about -0.03 per unit of risk. If you would invest 11,173 in BioNTech SE on August 25, 2024 and sell it today you would earn a total of 140.00 from holding BioNTech SE or generate 1.25% 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. Microbot Medical
Performance |
| Timeline |
| BioNTech SE |
| Microbot Medical |
BioNTech and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Microbot Medical
The main advantage of trading using opposite BioNTech and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Microbot Medical 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 Microbot Medical will offset losses from the drop in Microbot Medical's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Microbot Medical vs. Heartbeam | Microbot Medical vs. EUDA Health Holdings | Microbot Medical vs. Nutex Health | Microbot Medical vs. Healthcare Triangle |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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