Correlation Between Illumina and BIONTECH
Can any of the company-specific risk be diversified away by investing in both Illumina 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 Illumina and BIONTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Illumina and BIONTECH SE DRN, you can compare the effects of market volatilities on Illumina 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 Illumina with a short position of BIONTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Illumina and BIONTECH.
Diversification Opportunities for Illumina and BIONTECH
Good diversification
The 3 months correlation between Illumina and BIONTECH is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Illumina and BIONTECH SE DRN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIONTECH SE DRN and Illumina 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 Illumina 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 DRN has no effect on the direction of Illumina i.e., Illumina and BIONTECH go up and down completely randomly.
Pair Corralation between Illumina and BIONTECH
Assuming the 90 days trading horizon Illumina is expected to under-perform the BIONTECH. But the stock apears to be less risky and, when comparing its historical volatility, Illumina is 1.22 times less risky than BIONTECH. The stock trades about -0.01 of its potential returns per unit of risk. The BIONTECH SE DRN is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,620 in BIONTECH SE DRN on November 2, 2024 and sell it today you would lose (128.00) from holding BIONTECH SE DRN or give up 2.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Illumina vs. BIONTECH SE DRN
Performance |
| Timeline |
| Illumina |
| BIONTECH SE DRN |
Illumina and BIONTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Illumina and BIONTECH
The main advantage of trading using opposite Illumina and BIONTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Illumina 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.| Illumina vs. British American Tobacco | Illumina vs. T Mobile | Illumina vs. Ross Stores | Illumina vs. salesforce inc |
| BIONTECH vs. Take Two Interactive Software | BIONTECH vs. SSC Technologies Holdings, | BIONTECH vs. Agilent Technologies | BIONTECH vs. Martin Marietta Materials, |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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