Correlation Between Definitive Healthcare and BioNTech
Can any of the company-specific risk be diversified away by investing in both Definitive Healthcare 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 Definitive Healthcare and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Definitive Healthcare Corp and BioNTech SE, you can compare the effects of market volatilities on Definitive Healthcare 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 Definitive Healthcare with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Definitive Healthcare and BioNTech.
Diversification Opportunities for Definitive Healthcare and BioNTech
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Definitive and BioNTech is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Definitive Healthcare Corp and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Definitive Healthcare 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 Definitive Healthcare Corp 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 Definitive Healthcare i.e., Definitive Healthcare and BioNTech go up and down completely randomly.
Pair Corralation between Definitive Healthcare and BioNTech
Allowing for the 90-day total investment horizon Definitive Healthcare Corp is expected to under-perform the BioNTech. In addition to that, Definitive Healthcare is 1.33 times more volatile than BioNTech SE. It trades about 0.0 of its total potential returns per unit of risk. BioNTech SE is currently generating about 0.05 per unit of volatility. If you would invest 10,250 in BioNTech SE on September 3, 2024 and sell it today you would earn a total of 1,589 from holding BioNTech SE or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Definitive Healthcare Corp vs. BioNTech SE
Performance |
| Timeline |
| Definitive Healthcare |
| BioNTech SE |
Definitive Healthcare and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Definitive Healthcare and BioNTech
The main advantage of trading using opposite Definitive Healthcare and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Definitive Healthcare 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.| Definitive Healthcare vs. National Research Corp | Definitive Healthcare vs. Evolent Health | Definitive Healthcare vs. Simulations Plus | Definitive Healthcare vs. Privia Health Group |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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