Correlation Between Sarepta Therapeutics and BIONTECH
Can any of the company-specific risk be diversified away by investing in both Sarepta Therapeutics 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 Sarepta Therapeutics and BIONTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarepta Therapeutics and BIONTECH SE DRN, you can compare the effects of market volatilities on Sarepta Therapeutics 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 Sarepta Therapeutics with a short position of BIONTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarepta Therapeutics and BIONTECH.
Diversification Opportunities for Sarepta Therapeutics and BIONTECH
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sarepta and BIONTECH is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sarepta Therapeutics and BIONTECH SE DRN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIONTECH SE DRN and Sarepta Therapeutics 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 Sarepta Therapeutics 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 DRN has no effect on the direction of Sarepta Therapeutics i.e., Sarepta Therapeutics and BIONTECH go up and down completely randomly.
Pair Corralation between Sarepta Therapeutics and BIONTECH
Assuming the 90 days trading horizon Sarepta Therapeutics is expected to generate 1.31 times more return on investment than BIONTECH. However, Sarepta Therapeutics is 1.31 times more volatile than BIONTECH SE DRN. It trades about 0.02 of its potential returns per unit of risk. BIONTECH SE DRN is currently generating about -0.01 per unit of risk. If you would invest 2,937 in Sarepta Therapeutics on August 24, 2024 and sell it today you would earn a total of 275.00 from holding Sarepta Therapeutics or generate 9.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Sarepta Therapeutics vs. BIONTECH SE DRN
Performance |
| Timeline |
| Sarepta Therapeutics |
| BIONTECH SE DRN |
Sarepta Therapeutics and BIONTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sarepta Therapeutics and BIONTECH
The main advantage of trading using opposite Sarepta Therapeutics and BIONTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarepta Therapeutics 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.| Sarepta Therapeutics vs. Fras le SA | Sarepta Therapeutics vs. Clave Indices De | Sarepta Therapeutics vs. BTG Pactual Logstica | Sarepta Therapeutics vs. Telefonaktiebolaget LM Ericsson |
| BIONTECH vs. Fras le SA | BIONTECH vs. Clave Indices De | BIONTECH vs. BTG Pactual Logstica | BIONTECH vs. Telefonaktiebolaget LM Ericsson |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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