Correlation Between Inozyme Pharma and BioNTech
Can any of the company-specific risk be diversified away by investing in both Inozyme Pharma 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 Inozyme Pharma and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inozyme Pharma and BioNTech SE, you can compare the effects of market volatilities on Inozyme Pharma 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 Inozyme Pharma with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inozyme Pharma and BioNTech.
Diversification Opportunities for Inozyme Pharma and BioNTech
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Inozyme and BioNTech is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Inozyme Pharma and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Inozyme Pharma 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 Inozyme Pharma 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 Inozyme Pharma i.e., Inozyme Pharma and BioNTech go up and down completely randomly.
Pair Corralation between Inozyme Pharma and BioNTech
Given the investment horizon of 90 days Inozyme Pharma is expected to under-perform the BioNTech. In addition to that, Inozyme Pharma is 1.57 times more volatile than BioNTech SE. It trades about -0.1 of its total potential returns per unit of risk. BioNTech SE is currently generating about 0.25 per unit of volatility. If you would invest 10,356 in BioNTech SE on September 15, 2024 and sell it today you would earn a total of 1,682 from holding BioNTech SE or generate 16.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inozyme Pharma vs. BioNTech SE
Performance |
| Timeline |
| Inozyme Pharma |
| BioNTech SE |
Inozyme Pharma and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inozyme Pharma and BioNTech
The main advantage of trading using opposite Inozyme Pharma and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inozyme Pharma 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.| Inozyme Pharma vs. Puma Biotechnology | Inozyme Pharma vs. Iovance Biotherapeutics | Inozyme Pharma vs. Day One Biopharmaceuticals | Inozyme Pharma vs. Zentalis Pharmaceuticals Llc |
| BioNTech vs. Puma Biotechnology | BioNTech vs. Iovance Biotherapeutics | BioNTech vs. Day One Biopharmaceuticals | BioNTech vs. Inozyme Pharma |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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