Correlation Between Longeveron LLC and BioNTech
Can any of the company-specific risk be diversified away by investing in both Longeveron LLC 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 Longeveron LLC and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Longeveron LLC and BioNTech SE, you can compare the effects of market volatilities on Longeveron LLC 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 Longeveron LLC with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longeveron LLC and BioNTech.
Diversification Opportunities for Longeveron LLC and BioNTech
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Longeveron and BioNTech is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Longeveron LLC and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Longeveron LLC 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 Longeveron LLC 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 Longeveron LLC i.e., Longeveron LLC and BioNTech go up and down completely randomly.
Pair Corralation between Longeveron LLC and BioNTech
Given the investment horizon of 90 days Longeveron LLC is expected to under-perform the BioNTech. In addition to that, Longeveron LLC is 1.03 times more volatile than BioNTech SE. It trades about -0.19 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 11,048 in BioNTech SE on August 26, 2024 and sell it today you would earn a total of 265.00 from holding BioNTech SE or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longeveron LLC vs. BioNTech SE
Performance |
| Timeline |
| Longeveron LLC |
| BioNTech SE |
Longeveron LLC and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longeveron LLC and BioNTech
The main advantage of trading using opposite Longeveron LLC and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longeveron LLC 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.| Longeveron LLC vs. Nutriband | Longeveron LLC vs. Quoin Pharmaceuticals Ltd | Longeveron LLC vs. RenovoRx | Longeveron LLC vs. Virax Biolabs Group |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |