Correlation Between BioNTech and Supercom
Can any of the company-specific risk be diversified away by investing in both BioNTech and Supercom 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 Supercom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Supercom, you can compare the effects of market volatilities on BioNTech and Supercom 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 Supercom. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Supercom.
Diversification Opportunities for BioNTech and Supercom
Poor diversification
The 3 months correlation between BioNTech and Supercom is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Supercom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercom 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 Supercom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercom has no effect on the direction of BioNTech i.e., BioNTech and Supercom go up and down completely randomly.
Pair Corralation between BioNTech and Supercom
Given the investment horizon of 90 days BioNTech SE is expected to generate 0.27 times more return on investment than Supercom. However, BioNTech SE is 3.68 times less risky than Supercom. It trades about -0.02 of its potential returns per unit of risk. Supercom is currently generating about -0.02 per unit of risk. If you would invest 16,662 in BioNTech SE on September 2, 2024 and sell it today you would lose (4,823) from holding BioNTech SE or give up 28.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Supercom
Performance |
| Timeline |
| BioNTech SE |
| Supercom |
BioNTech and Supercom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Supercom
The main advantage of trading using opposite BioNTech and Supercom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Supercom 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 Supercom will offset losses from the drop in Supercom's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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