Correlation Between Trade Desk and BIONTECH
Can any of the company-specific risk be diversified away by investing in both Trade Desk 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 Trade Desk and BIONTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Trade Desk and BIONTECH SE DRN, you can compare the effects of market volatilities on Trade Desk 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 Trade Desk with a short position of BIONTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trade Desk and BIONTECH.
Diversification Opportunities for Trade Desk and BIONTECH
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Trade and BIONTECH is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding The Trade Desk 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 Trade Desk 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 The Trade Desk 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 Trade Desk i.e., Trade Desk and BIONTECH go up and down completely randomly.
Pair Corralation between Trade Desk and BIONTECH
Assuming the 90 days trading horizon Trade Desk is expected to generate 1.63 times less return on investment than BIONTECH. In addition to that, Trade Desk is 1.28 times more volatile than BIONTECH SE DRN. It trades about 0.03 of its total potential returns per unit of risk. BIONTECH SE DRN is currently generating about 0.06 per unit of volatility. If you would invest 3,925 in BIONTECH SE DRN on October 25, 2024 and sell it today you would earn a total of 359.00 from holding BIONTECH SE DRN or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.31% |
| Values | Daily Returns |
The Trade Desk vs. BIONTECH SE DRN
Performance |
| Timeline |
| Trade Desk |
| BIONTECH SE DRN |
Trade Desk and BIONTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trade Desk and BIONTECH
The main advantage of trading using opposite Trade Desk and BIONTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trade Desk 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.| Trade Desk vs. Trane Technologies plc | Trade Desk vs. CM Hospitalar SA | Trade Desk vs. GX AI TECH | Trade Desk vs. UnitedHealth Group Incorporated |
| BIONTECH vs. Hormel Foods | BIONTECH vs. CRISPR Therapeutics AG | BIONTECH vs. The Trade Desk | BIONTECH vs. Monster Beverage |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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