Correlation Between KNOT Offshore and BioNTech
Can any of the company-specific risk be diversified away by investing in both KNOT Offshore 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 KNOT Offshore and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KNOT Offshore Partners and BioNTech SE, you can compare the effects of market volatilities on KNOT Offshore 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 KNOT Offshore with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNOT Offshore and BioNTech.
Diversification Opportunities for KNOT Offshore and BioNTech
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KNOT and BioNTech is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding KNOT Offshore Partners and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and KNOT Offshore 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 KNOT Offshore Partners 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 KNOT Offshore i.e., KNOT Offshore and BioNTech go up and down completely randomly.
Pair Corralation between KNOT Offshore and BioNTech
Given the investment horizon of 90 days KNOT Offshore is expected to generate 2.18 times less return on investment than BioNTech. But when comparing it to its historical volatility, KNOT Offshore Partners is 1.01 times less risky than BioNTech. It trades about 0.02 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,971 in BioNTech SE on September 1, 2024 and sell it today you would earn a total of 1,868 from holding BioNTech SE or generate 18.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KNOT Offshore Partners vs. BioNTech SE
Performance |
| Timeline |
| KNOT Offshore Partners |
| BioNTech SE |
KNOT Offshore and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNOT Offshore and BioNTech
The main advantage of trading using opposite KNOT Offshore and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNOT Offshore 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.| KNOT Offshore vs. USA Compression Partners | KNOT Offshore vs. Dynagas LNG Partners | KNOT Offshore vs. Crossamerica Partners LP | KNOT Offshore vs. Delek Logistics Partners |
| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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