Correlation Between SUMITOMO P and BioNTech
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By analyzing existing cross correlation between SUMITOMO P SP and BioNTech SE, you can compare the effects of market volatilities on SUMITOMO P 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 SUMITOMO P with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUMITOMO P and BioNTech.
Diversification Opportunities for SUMITOMO P and BioNTech
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SUMITOMO and BioNTech is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SUMITOMO P SP and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and SUMITOMO P 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 SUMITOMO P SP 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 SUMITOMO P i.e., SUMITOMO P and BioNTech go up and down completely randomly.
Pair Corralation between SUMITOMO P and BioNTech
Assuming the 90 days trading horizon SUMITOMO P is expected to generate 7.87 times less return on investment than BioNTech. But when comparing it to its historical volatility, SUMITOMO P SP is 2.4 times less risky than BioNTech. It trades about 0.04 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 10,430 in BioNTech SE on August 29, 2024 and sell it today you would earn a total of 950.00 from holding BioNTech SE or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUMITOMO P SP vs. BioNTech SE
Performance |
| Timeline |
| SUMITOMO P SP |
| BioNTech SE |
SUMITOMO P and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUMITOMO P and BioNTech
The main advantage of trading using opposite SUMITOMO P and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUMITOMO P 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.| SUMITOMO P vs. Superior Plus Corp | SUMITOMO P vs. NMI Holdings | SUMITOMO P vs. Origin Agritech | SUMITOMO P vs. SIVERS SEMICONDUCTORS AB |
| BioNTech vs. KB Financial Group | BioNTech vs. Superior Plus Corp | BioNTech vs. Origin Agritech | BioNTech vs. Identiv |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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