Correlation Between Spirent Communications and BioNTech
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By analyzing existing cross correlation between Spirent Communications plc and BioNTech SE, you can compare the effects of market volatilities on Spirent Communications 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 Spirent Communications with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spirent Communications and BioNTech.
Diversification Opportunities for Spirent Communications and BioNTech
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Spirent and BioNTech is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Spirent Communications plc and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Spirent Communications 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 Spirent Communications plc 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 has no effect on the direction of Spirent Communications i.e., Spirent Communications and BioNTech go up and down completely randomly.
Pair Corralation between Spirent Communications and BioNTech
Assuming the 90 days horizon Spirent Communications is expected to generate 3.16 times less return on investment than BioNTech. In addition to that, Spirent Communications is 1.45 times more volatile than BioNTech SE. It trades about 0.02 of its total potential returns per unit of risk. BioNTech SE is currently generating about 0.08 per unit of volatility. If you would invest 11,460 in BioNTech SE on November 5, 2024 and sell it today you would earn a total of 380.00 from holding BioNTech SE or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spirent Communications plc vs. BioNTech SE
Performance |
| Timeline |
| Spirent Communications |
| BioNTech SE |
Spirent Communications and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spirent Communications and BioNTech
The main advantage of trading using opposite Spirent Communications and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spirent Communications 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.| Spirent Communications vs. PSI Software AG | Spirent Communications vs. MAGIC SOFTWARE ENTR | Spirent Communications vs. UPDATE SOFTWARE | Spirent Communications vs. NORTHEAST UTILITIES |
| BioNTech vs. Adtalem Global Education | BioNTech vs. CHINA EDUCATION GROUP | BioNTech vs. Ribbon Communications | BioNTech vs. Cogent Communications Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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