Correlation Between BioNTech and Udemy

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Can any of the company-specific risk be diversified away by investing in both BioNTech and Udemy 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 Udemy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Udemy Inc, you can compare the effects of market volatilities on BioNTech and Udemy 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 Udemy. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Udemy.

Diversification Opportunities for BioNTech and Udemy

BioNTechUdemyDiversified AwayBioNTechUdemyDiversified Away100%
0.21
  Correlation Coefficient

Modest diversification

The 3 months correlation between BioNTech and Udemy is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Udemy Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Udemy Inc 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 Udemy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Udemy Inc has no effect on the direction of BioNTech i.e., BioNTech and Udemy go up and down completely randomly.

Pair Corralation between BioNTech and Udemy

Given the investment horizon of 90 days BioNTech is expected to generate 4.1 times less return on investment than Udemy. But when comparing it to its historical volatility, BioNTech SE is 1.33 times less risky than Udemy. It trades about 0.0 of its potential returns per unit of risk. Udemy Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  990.00  in Udemy Inc on November 26, 2024 and sell it today you would lose (21.00) from holding Udemy Inc or give up 2.12% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

BioNTech SE  vs.  Udemy Inc

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-505101520
JavaScript chart by amCharts 3.21.15BNTX UDMY
       Timeline  
BioNTech SE 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days BioNTech SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, BioNTech is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb110115120125130
Udemy Inc 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Udemy Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain primary indicators, Udemy showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb7.588.599.51010.5

BioNTech and Udemy Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-9.92-7.43-4.94-2.450.04152.515.117.7110.312.9 0.0200.0250.0300.0350.040
JavaScript chart by amCharts 3.21.15BNTX UDMY
       Returns  

Pair Trading with BioNTech and Udemy

The main advantage of trading using opposite BioNTech and Udemy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Udemy 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 Udemy will offset losses from the drop in Udemy's long position.
The idea behind BioNTech SE and Udemy Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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