Correlation Between Sana Biotechnology and BioNTech
Can any of the company-specific risk be diversified away by investing in both Sana Biotechnology 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 Sana Biotechnology and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sana Biotechnology and BioNTech SE, you can compare the effects of market volatilities on Sana Biotechnology 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 Sana Biotechnology with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sana Biotechnology and BioNTech.
Diversification Opportunities for Sana Biotechnology and BioNTech
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sana and BioNTech is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sana Biotechnology and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Sana Biotechnology 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 Sana Biotechnology 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 Sana Biotechnology i.e., Sana Biotechnology and BioNTech go up and down completely randomly.
Pair Corralation between Sana Biotechnology and BioNTech
Given the investment horizon of 90 days Sana Biotechnology is expected to generate 3.73 times more return on investment than BioNTech. However, Sana Biotechnology is 3.73 times more volatile than BioNTech SE. It trades about 0.03 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.0 per unit of risk. If you would invest 460.00 in Sana Biotechnology on October 13, 2024 and sell it today you would lose (94.00) from holding Sana Biotechnology or give up 20.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sana Biotechnology vs. BioNTech SE
Performance |
| Timeline |
| Sana Biotechnology |
| BioNTech SE |
Sana Biotechnology and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sana Biotechnology and BioNTech
The main advantage of trading using opposite Sana Biotechnology and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sana Biotechnology 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.| Sana Biotechnology vs. Olema Pharmaceuticals | Sana Biotechnology vs. Cullinan Oncology LLC | Sana Biotechnology vs. Zentalis Pharmaceuticals Llc | Sana Biotechnology vs. X4 Pharmaceuticals |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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