Correlation Between Salesforce and BioNTech
Can any of the company-specific risk be diversified away by investing in both Salesforce 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 Salesforce and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and BioNTech SE, you can compare the effects of market volatilities on Salesforce 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 Salesforce with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and BioNTech.
Diversification Opportunities for Salesforce and BioNTech
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Salesforce and BioNTech is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Salesforce 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 Salesforce 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 Salesforce i.e., Salesforce and BioNTech go up and down completely randomly.
Pair Corralation between Salesforce and BioNTech
Considering the 90-day investment horizon Salesforce is expected to generate 1.43 times less return on investment than BioNTech. But when comparing it to its historical volatility, Salesforce is 1.29 times less risky than BioNTech. It trades about 0.04 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,375 in BioNTech SE on August 25, 2024 and sell it today you would earn a total of 1,985 from holding BioNTech SE or generate 21.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.96% |
| Values | Daily Returns |
Salesforce vs. BioNTech SE
Performance |
| Timeline |
| Salesforce |
| BioNTech SE |
Salesforce and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and BioNTech
The main advantage of trading using opposite Salesforce and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce 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.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
| BioNTech vs. Admiral Group PLC | BioNTech vs. Anglo American PLC | BioNTech vs. Vodafone Group PLC | BioNTech vs. Caffyns PLC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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