Correlation Between MSP Recovery and BioNTech
Can any of the company-specific risk be diversified away by investing in both MSP Recovery 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 MSP Recovery and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSP Recovery and BioNTech SE, you can compare the effects of market volatilities on MSP Recovery 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 MSP Recovery with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSP Recovery and BioNTech.
Diversification Opportunities for MSP Recovery and BioNTech
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between MSP and BioNTech is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding MSP Recovery and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and MSP Recovery 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 MSP Recovery 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 MSP Recovery i.e., MSP Recovery and BioNTech go up and down completely randomly.
Pair Corralation between MSP Recovery and BioNTech
Assuming the 90 days horizon MSP Recovery is expected to generate 13.73 times more return on investment than BioNTech. However, MSP Recovery is 13.73 times more volatile than BioNTech SE. It trades about 0.3 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.05 per unit of risk. If you would invest 4.02 in MSP Recovery on August 26, 2024 and sell it today you would earn a total of 3.44 from holding MSP Recovery or generate 85.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
MSP Recovery vs. BioNTech SE
Performance |
| Timeline |
| MSP Recovery |
| BioNTech SE |
MSP Recovery and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSP Recovery and BioNTech
The main advantage of trading using opposite MSP Recovery and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSP Recovery 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.| MSP Recovery vs. Century Aluminum | MSP Recovery vs. ArcelorMittal SA ADR | MSP Recovery vs. Huadi International Group | MSP Recovery vs. Xponential Fitness |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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