Correlation Between Carmat SA and BioNTech
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By analyzing existing cross correlation between Carmat SA and BioNTech SE, you can compare the effects of market volatilities on Carmat SA 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 Carmat SA with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmat SA and BioNTech.
Diversification Opportunities for Carmat SA and BioNTech
Excellent diversification
The 3 months correlation between Carmat and BioNTech is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Carmat SA and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Carmat SA 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 Carmat SA 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 Carmat SA i.e., Carmat SA and BioNTech go up and down completely randomly.
Pair Corralation between Carmat SA and BioNTech
Assuming the 90 days horizon Carmat SA is expected to under-perform the BioNTech. In addition to that, Carmat SA is 2.85 times more volatile than BioNTech SE. It trades about -0.26 of its total potential returns per unit of risk. BioNTech SE is currently generating about 0.11 per unit of volatility. If you would invest 11,260 in BioNTech SE on November 4, 2024 and sell it today you would earn a total of 580.00 from holding BioNTech SE or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carmat SA vs. BioNTech SE
Performance |
| Timeline |
| Carmat SA |
| BioNTech SE |
Carmat SA and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmat SA and BioNTech
The main advantage of trading using opposite Carmat SA and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmat SA 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.| Carmat SA vs. Hitachi Construction Machinery | Carmat SA vs. Aluminum of | Carmat SA vs. AUST AGRICULTURAL | Carmat SA vs. Air Transport Services |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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