Correlation Between BioNTech and Playtech Plc
Can any of the company-specific risk be diversified away by investing in both BioNTech and Playtech Plc 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 Playtech Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Playtech plc, you can compare the effects of market volatilities on BioNTech and Playtech Plc 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 Playtech Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Playtech Plc.
Diversification Opportunities for BioNTech and Playtech Plc
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioNTech and Playtech is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Playtech plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtech plc 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 Playtech Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtech plc has no effect on the direction of BioNTech i.e., BioNTech and Playtech Plc go up and down completely randomly.
Pair Corralation between BioNTech and Playtech Plc
Given the investment horizon of 90 days BioNTech is expected to generate 10.05 times less return on investment than Playtech Plc. In addition to that, BioNTech is 1.05 times more volatile than Playtech plc. It trades about 0.0 of its total potential returns per unit of risk. Playtech plc is currently generating about 0.03 per unit of volatility. If you would invest 702.00 in Playtech plc on November 28, 2024 and sell it today you would earn a total of 198.00 from holding Playtech plc or generate 28.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
BioNTech SE vs. Playtech plc
Performance |
| Timeline |
| BioNTech SE |
| Playtech plc |
BioNTech and Playtech Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Playtech Plc
The main advantage of trading using opposite BioNTech and Playtech Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Playtech Plc 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 Playtech Plc will offset losses from the drop in Playtech Plc's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Playtech Plc vs. CVR Partners LP | Playtech Plc vs. PPG Industries | Playtech Plc vs. Nasdaq Inc | Playtech Plc vs. Freedom Holding Corp |
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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