Correlation Between Endeavour Mining and BioNTech
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining 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 Endeavour Mining and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endeavour Mining Corp and BioNTech SE, you can compare the effects of market volatilities on Endeavour Mining 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 Endeavour Mining with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and BioNTech.
Diversification Opportunities for Endeavour Mining and BioNTech
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Endeavour and BioNTech is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Endeavour Mining 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 Endeavour Mining 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 Endeavour Mining i.e., Endeavour Mining and BioNTech go up and down completely randomly.
Pair Corralation between Endeavour Mining and BioNTech
Assuming the 90 days trading horizon Endeavour Mining is expected to generate 7.46 times less return on investment than BioNTech. But when comparing it to its historical volatility, Endeavour Mining Corp is 1.92 times less risky than BioNTech. It trades about 0.03 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 11,175 in BioNTech SE on September 14, 2024 and sell it today you would earn a total of 975.00 from holding BioNTech SE or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Mining Corp vs. BioNTech SE
Performance |
| Timeline |
| Endeavour Mining Corp |
| BioNTech SE |
Endeavour Mining and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and BioNTech
The main advantage of trading using opposite Endeavour Mining and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining 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.| Endeavour Mining vs. Givaudan SA | Endeavour Mining vs. Antofagasta PLC | Endeavour Mining vs. Ferrexpo PLC | Endeavour Mining vs. Atalaya Mining |
| BioNTech vs. Samsung Electronics Co | BioNTech vs. Samsung Electronics Co | BioNTech vs. Hyundai Motor | BioNTech vs. Toyota Motor Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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