Correlation Between Franklin Street and BioNTech
Can any of the company-specific risk be diversified away by investing in both Franklin Street 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 Franklin Street and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Street Properties and BioNTech SE, you can compare the effects of market volatilities on Franklin Street 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 Franklin Street with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Street and BioNTech.
Diversification Opportunities for Franklin Street and BioNTech
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and BioNTech is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Street Properties and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Franklin Street 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 Franklin Street Properties 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 Franklin Street i.e., Franklin Street and BioNTech go up and down completely randomly.
Pair Corralation between Franklin Street and BioNTech
Considering the 90-day investment horizon Franklin Street Properties is expected to generate 0.94 times more return on investment than BioNTech. However, Franklin Street Properties is 1.06 times less risky than BioNTech. It trades about 0.12 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.09 per unit of risk. If you would invest 177.00 in Franklin Street Properties on August 31, 2024 and sell it today you would earn a total of 14.00 from holding Franklin Street Properties or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Street Properties vs. BioNTech SE
Performance |
| Timeline |
| Franklin Street Prop |
| BioNTech SE |
Franklin Street and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Street and BioNTech
The main advantage of trading using opposite Franklin Street and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Street 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.| Franklin Street vs. Equity Commonwealth | Franklin Street vs. Cousins Properties Incorporated | Franklin Street vs. Creative Media Community | Franklin Street vs. Highwoods Properties |
| BioNTech vs. Cue Biopharma | BioNTech vs. Tff Pharmaceuticals | BioNTech vs. Eliem Therapeutics | BioNTech vs. Inhibrx |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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