Correlation Between Take Two and BIONTECH
Can any of the company-specific risk be diversified away by investing in both Take Two 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 Take Two and BIONTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Take Two Interactive Software and BIONTECH SE DRN, you can compare the effects of market volatilities on Take Two 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 Take Two with a short position of BIONTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and BIONTECH.
Diversification Opportunities for Take Two and BIONTECH
Significant diversification
The 3 months correlation between Take and BIONTECH is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software 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 Take Two 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 Take Two Interactive Software 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 Take Two i.e., Take Two and BIONTECH go up and down completely randomly.
Pair Corralation between Take Two and BIONTECH
Assuming the 90 days trading horizon Take Two is expected to generate 1.07 times less return on investment than BIONTECH. But when comparing it to its historical volatility, Take Two Interactive Software is 1.66 times less risky than BIONTECH. It trades about 0.13 of its potential returns per unit of risk. BIONTECH SE DRN is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,778 in BIONTECH SE DRN on August 27, 2024 and sell it today you would earn a total of 1,302 from holding BIONTECH SE DRN or generate 46.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. BIONTECH SE DRN
Performance |
| Timeline |
| Take Two Interactive |
| BIONTECH SE DRN |
Take Two and BIONTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and BIONTECH
The main advantage of trading using opposite Take Two and BIONTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two 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.| Take Two vs. Technos SA | Take Two vs. Palantir Technologies | Take Two vs. Deutsche Bank Aktiengesellschaft | Take Two vs. Align Technology |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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