Correlation Between ETFS Coffee and BioNTech
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By analyzing existing cross correlation between ETFS Coffee ETC and BioNTech SE, you can compare the effects of market volatilities on ETFS Coffee 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 ETFS Coffee with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETFS Coffee and BioNTech.
Diversification Opportunities for ETFS Coffee and BioNTech
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ETFS and BioNTech is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding ETFS Coffee ETC and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and ETFS Coffee 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 ETFS Coffee ETC 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 ETFS Coffee i.e., ETFS Coffee and BioNTech go up and down completely randomly.
Pair Corralation between ETFS Coffee and BioNTech
Assuming the 90 days trading horizon ETFS Coffee ETC is expected to generate 0.63 times more return on investment than BioNTech. However, ETFS Coffee ETC is 1.6 times less risky than BioNTech. It trades about 0.49 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.12 per unit of risk. If you would invest 3,861 in ETFS Coffee ETC on August 28, 2024 and sell it today you would earn a total of 1,068 from holding ETFS Coffee ETC or generate 27.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
ETFS Coffee ETC vs. BioNTech SE
Performance |
| Timeline |
| ETFS Coffee ETC |
| BioNTech SE |
ETFS Coffee and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETFS Coffee and BioNTech
The main advantage of trading using opposite ETFS Coffee and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETFS Coffee 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.| ETFS Coffee vs. Apple Inc | ETFS Coffee vs. Apple Inc | ETFS Coffee vs. Apple Inc | ETFS Coffee vs. Apple Inc |
| BioNTech vs. KB Financial Group | BioNTech vs. Superior Plus Corp | BioNTech vs. Origin Agritech | BioNTech vs. Identiv |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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