Correlation Between Fulcrum Metals and BioNTech
Can any of the company-specific risk be diversified away by investing in both Fulcrum Metals 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 Fulcrum Metals and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulcrum Metals PLC and BioNTech SE, you can compare the effects of market volatilities on Fulcrum Metals 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 Fulcrum Metals with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulcrum Metals and BioNTech.
Diversification Opportunities for Fulcrum Metals and BioNTech
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fulcrum and BioNTech is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Fulcrum Metals PLC and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Fulcrum Metals 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 Fulcrum Metals PLC 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 Fulcrum Metals i.e., Fulcrum Metals and BioNTech go up and down completely randomly.
Pair Corralation between Fulcrum Metals and BioNTech
Assuming the 90 days trading horizon Fulcrum Metals PLC is expected to under-perform the BioNTech. In addition to that, Fulcrum Metals is 1.11 times more volatile than BioNTech SE. It trades about -0.13 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 10,062 in BioNTech SE on September 5, 2024 and sell it today you would earn a total of 1,666 from holding BioNTech SE or generate 16.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Fulcrum Metals PLC vs. BioNTech SE
Performance |
| Timeline |
| Fulcrum Metals PLC |
| BioNTech SE |
Fulcrum Metals and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fulcrum Metals and BioNTech
The main advantage of trading using opposite Fulcrum Metals and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulcrum Metals 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.| Fulcrum Metals vs. Givaudan SA | Fulcrum Metals vs. Antofagasta PLC | Fulcrum Metals vs. Atalaya Mining | Fulcrum Metals vs. Ferrexpo PLC |
| BioNTech vs. Blackstone Loan Financing | BioNTech vs. PPHE Hotel Group | BioNTech vs. Europa Metals | BioNTech vs. Fulcrum Metals 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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