Correlation Between Paysafe and BioNTech
Can any of the company-specific risk be diversified away by investing in both Paysafe 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 Paysafe and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paysafe and BioNTech SE, you can compare the effects of market volatilities on Paysafe 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 Paysafe with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paysafe and BioNTech.
Diversification Opportunities for Paysafe and BioNTech
Average diversification
The 3 months correlation between Paysafe and BioNTech is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Paysafe and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Paysafe 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 Paysafe 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 Paysafe i.e., Paysafe and BioNTech go up and down completely randomly.
Pair Corralation between Paysafe and BioNTech
Given the investment horizon of 90 days Paysafe is expected to under-perform the BioNTech. In addition to that, Paysafe is 1.86 times more volatile than BioNTech SE. It trades about -0.12 of its total potential returns per unit of risk. BioNTech SE is currently generating about 0.03 per unit of volatility. If you would invest 11,173 in BioNTech SE on August 25, 2024 and sell it today you would earn a total of 140.00 from holding BioNTech SE or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paysafe vs. BioNTech SE
Performance |
| Timeline |
| Paysafe |
| BioNTech SE |
Paysafe and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paysafe and BioNTech
The main advantage of trading using opposite Paysafe and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paysafe 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.The idea behind Paysafe and BioNTech SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |