Correlation Between Supply@Me Capital and BioNTech
Can any of the company-specific risk be diversified away by investing in both Supply@Me Capital 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 Supply@Me Capital and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SupplyMe Capital PLC and BioNTech SE, you can compare the effects of market volatilities on Supply@Me Capital 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 Supply@Me Capital with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supply@Me Capital and BioNTech.
Diversification Opportunities for Supply@Me Capital and BioNTech
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Supply@Me and BioNTech is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Supply@Me Capital 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 SupplyMe Capital PLC 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 Supply@Me Capital i.e., Supply@Me Capital and BioNTech go up and down completely randomly.
Pair Corralation between Supply@Me Capital and BioNTech
Assuming the 90 days trading horizon SupplyMe Capital PLC is expected to under-perform the BioNTech. In addition to that, Supply@Me Capital is 2.35 times more volatile than BioNTech SE. It trades about -0.01 of its total potential returns per unit of risk. BioNTech SE is currently generating about 0.07 per unit of volatility. If you would invest 11,374 in BioNTech SE on August 29, 2024 and sell it today you would earn a total of 541.00 from holding BioNTech SE or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SupplyMe Capital PLC vs. BioNTech SE
Performance |
| Timeline |
| SupplyMe Capital PLC |
| BioNTech SE |
Supply@Me Capital and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supply@Me Capital and BioNTech
The main advantage of trading using opposite Supply@Me Capital and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supply@Me Capital 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.| Supply@Me Capital vs. Alaska Air Group | Supply@Me Capital vs. Delta Air Lines | Supply@Me Capital vs. Deltex Medical Group | Supply@Me Capital vs. Finnair Oyj |
| BioNTech vs. Auction Technology Group | BioNTech vs. Ameriprise Financial | BioNTech vs. National Bank of | BioNTech vs. Take Two Interactive Software |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |