Correlation Between MagnaChip Semiconductor and BioNTech
Can any of the company-specific risk be diversified away by investing in both MagnaChip Semiconductor 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 MagnaChip Semiconductor and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MagnaChip Semiconductor and BioNTech SE, you can compare the effects of market volatilities on MagnaChip Semiconductor 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 MagnaChip Semiconductor with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of MagnaChip Semiconductor and BioNTech.
Diversification Opportunities for MagnaChip Semiconductor and BioNTech
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between MagnaChip and BioNTech is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and MagnaChip Semiconductor 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 MagnaChip Semiconductor 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 MagnaChip Semiconductor i.e., MagnaChip Semiconductor and BioNTech go up and down completely randomly.
Pair Corralation between MagnaChip Semiconductor and BioNTech
Allowing for the 90-day total investment horizon MagnaChip Semiconductor is expected to under-perform the BioNTech. But the stock apears to be less risky and, when comparing its historical volatility, MagnaChip Semiconductor is 1.06 times less risky than BioNTech. The stock trades about -0.06 of its potential returns per unit of risk. The BioNTech SE is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 17,824 in BioNTech SE on September 3, 2024 and sell it today you would lose (5,985) from holding BioNTech SE or give up 33.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MagnaChip Semiconductor vs. BioNTech SE
Performance |
| Timeline |
| MagnaChip Semiconductor |
| BioNTech SE |
MagnaChip Semiconductor and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MagnaChip Semiconductor and BioNTech
The main advantage of trading using opposite MagnaChip Semiconductor and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MagnaChip Semiconductor 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.| MagnaChip Semiconductor vs. CEVA Inc | MagnaChip Semiconductor vs. MACOM Technology Solutions | MagnaChip Semiconductor vs. FormFactor | MagnaChip Semiconductor vs. MaxLinear |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |