Correlation Between Vita Coco and BioNTech
Can any of the company-specific risk be diversified away by investing in both Vita Coco 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 Vita Coco and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vita Coco and BioNTech SE, you can compare the effects of market volatilities on Vita Coco 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 Vita Coco with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vita Coco and BioNTech.
Diversification Opportunities for Vita Coco and BioNTech
Significant diversification
The 3 months correlation between Vita and BioNTech is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Vita Coco and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Vita Coco 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 Vita Coco 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 Vita Coco i.e., Vita Coco and BioNTech go up and down completely randomly.
Pair Corralation between Vita Coco and BioNTech
Given the investment horizon of 90 days Vita Coco is expected to generate 1.04 times less return on investment than BioNTech. But when comparing it to its historical volatility, Vita Coco is 1.51 times less risky than BioNTech. It trades about 0.12 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8,550 in BioNTech SE on October 21, 2024 and sell it today you would earn a total of 2,643 from holding BioNTech SE or generate 30.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vita Coco vs. BioNTech SE
Performance |
| Timeline |
| Vita Coco |
| BioNTech SE |
Vita Coco and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vita Coco and BioNTech
The main advantage of trading using opposite Vita Coco and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vita Coco 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.| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. Coca Cola European Partners | Vita Coco vs. Embotelladora Andina SA | Vita Coco vs. Monster Beverage Corp |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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