Correlation Between Citigroup and BioNTech
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By analyzing existing cross correlation between Citigroup and BioNTech SE, you can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BioNTech.
Diversification Opportunities for Citigroup and BioNTech
Modest diversification
The 3 months correlation between Citigroup and BioNTech is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Citigroup 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 Citigroup 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 Citigroup i.e., Citigroup and BioNTech go up and down completely randomly.
Pair Corralation between Citigroup and BioNTech
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.09 times less return on investment than BioNTech. But when comparing it to its historical volatility, Citigroup is 2.0 times less risky than BioNTech. It trades about 0.21 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 10,430 in BioNTech SE on August 29, 2024 and sell it today you would earn a total of 950.00 from holding BioNTech SE or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. BioNTech SE
Performance |
| Timeline |
| Citigroup |
| BioNTech SE |
Citigroup and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BioNTech
The main advantage of trading using opposite Citigroup and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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.The idea behind Citigroup and BioNTech SE 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.| BioNTech vs. KB Financial Group | BioNTech vs. Superior Plus Corp | BioNTech vs. Origin Agritech | BioNTech vs. Identiv |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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