Correlation Between Science In and BioNTech
Can any of the company-specific risk be diversified away by investing in both Science In 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 Science In and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Science in Sport and BioNTech SE, you can compare the effects of market volatilities on Science In 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 Science In with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Science In and BioNTech.
Diversification Opportunities for Science In and BioNTech
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Science and BioNTech is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Science in Sport and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Science In 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 Science in Sport 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 Science In i.e., Science In and BioNTech go up and down completely randomly.
Pair Corralation between Science In and BioNTech
Assuming the 90 days trading horizon Science in Sport is expected to generate 0.41 times more return on investment than BioNTech. However, Science in Sport is 2.43 times less risky than BioNTech. It trades about 0.11 of its potential returns per unit of risk. BioNTech SE is currently generating about -0.02 per unit of risk. If you would invest 2,520 in Science in Sport on September 5, 2024 and sell it today you would earn a total of 130.00 from holding Science in Sport or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Science in Sport vs. BioNTech SE
Performance |
| Timeline |
| Science in Sport |
| BioNTech SE |
Science In and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Science In and BioNTech
The main advantage of trading using opposite Science In and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Science In 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.| Science In vs. CleanTech Lithium plc | Science In vs. Universal Display Corp | Science In vs. Cairo Communication SpA | Science In vs. Zoom Video Communications |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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