Correlation Between BRB Banco and BIONTECH
Can any of the company-specific risk be diversified away by investing in both BRB Banco and BIONTECH 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 BRB Banco and BIONTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRB Banco and BIONTECH SE DRN, you can compare the effects of market volatilities on BRB Banco and BIONTECH 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 BRB Banco with a short position of BIONTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRB Banco and BIONTECH.
Diversification Opportunities for BRB Banco and BIONTECH
Very good diversification
The 3 months correlation between BRB and BIONTECH is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding BRB Banco and BIONTECH SE DRN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIONTECH SE DRN and BRB Banco 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 BRB Banco are associated (or correlated) with BIONTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIONTECH SE DRN has no effect on the direction of BRB Banco i.e., BRB Banco and BIONTECH go up and down completely randomly.
Pair Corralation between BRB Banco and BIONTECH
Assuming the 90 days trading horizon BRB Banco is expected to generate 1.6 times more return on investment than BIONTECH. However, BRB Banco is 1.6 times more volatile than BIONTECH SE DRN. It trades about 0.0 of its potential returns per unit of risk. BIONTECH SE DRN is currently generating about -0.01 per unit of risk. If you would invest 1,247 in BRB Banco on August 24, 2024 and sell it today you would lose (362.00) from holding BRB Banco or give up 29.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
BRB Banco vs. BIONTECH SE DRN
Performance |
| Timeline |
| BRB Banco |
| BIONTECH SE DRN |
BRB Banco and BIONTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRB Banco and BIONTECH
The main advantage of trading using opposite BRB Banco and BIONTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRB Banco position performs unexpectedly, BIONTECH 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 BIONTECH will offset losses from the drop in BIONTECH's long position.| BRB Banco vs. BRB Banco de | BRB Banco vs. Banco do Nordeste | BRB Banco vs. Banco do Estado | BRB Banco vs. Banco Mercantil do |
| BIONTECH vs. Fras le SA | BIONTECH vs. Clave Indices De | BIONTECH vs. BTG Pactual Logstica | BIONTECH vs. Telefonaktiebolaget LM Ericsson |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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