Correlation Between Playtika Holding and BioNTech
Can any of the company-specific risk be diversified away by investing in both Playtika Holding 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 Playtika Holding and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtika Holding Corp and BioNTech SE, you can compare the effects of market volatilities on Playtika Holding 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 Playtika Holding with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and BioNTech.
Diversification Opportunities for Playtika Holding and BioNTech
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Playtika and BioNTech is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Playtika Holding 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 Playtika Holding Corp 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 Playtika Holding i.e., Playtika Holding and BioNTech go up and down completely randomly.
Pair Corralation between Playtika Holding and BioNTech
Given the investment horizon of 90 days Playtika Holding is expected to generate 1.16 times less return on investment than BioNTech. But when comparing it to its historical volatility, Playtika Holding Corp is 3.15 times less risky than BioNTech. It trades about 0.26 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 11,148 in BioNTech SE on September 2, 2024 and sell it today you would earn a total of 691.00 from holding BioNTech SE or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. BioNTech SE
Performance |
| Timeline |
| Playtika Holding Corp |
| BioNTech SE |
Playtika Holding and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and BioNTech
The main advantage of trading using opposite Playtika Holding and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding 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.| Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Snail, Class A | Playtika Holding vs. GameSquare Holdings |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |