Correlation Between Capital Clean and BioNTech
Can any of the company-specific risk be diversified away by investing in both Capital Clean 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 Capital Clean and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Clean Energy and BioNTech SE, you can compare the effects of market volatilities on Capital Clean 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 Capital Clean with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Clean and BioNTech.
Diversification Opportunities for Capital Clean and BioNTech
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Capital and BioNTech is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Capital Clean Energy and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Capital Clean 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 Capital Clean Energy 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 Capital Clean i.e., Capital Clean and BioNTech go up and down completely randomly.
Pair Corralation between Capital Clean and BioNTech
Given the investment horizon of 90 days Capital Clean Energy is expected to generate 0.79 times more return on investment than BioNTech. However, Capital Clean Energy is 1.26 times less risky than BioNTech. It trades about 0.07 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.03 per unit of risk. If you would invest 1,354 in Capital Clean Energy on August 25, 2024 and sell it today you would earn a total of 473.00 from holding Capital Clean Energy or generate 34.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Clean Energy vs. BioNTech SE
Performance |
| Timeline |
| Capital Clean Energy |
| BioNTech SE |
Capital Clean and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Clean and BioNTech
The main advantage of trading using opposite Capital Clean and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Clean 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.| Capital Clean vs. VirnetX Holding Corp | Capital Clean vs. Mill City Ventures | Capital Clean vs. Rumble Inc | Capital Clean vs. Chiba Bank Ltd |
| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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