Correlation Between THORNEY TECHS and BioNTech
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By analyzing existing cross correlation between THORNEY TECHS LTD and BioNTech SE, you can compare the effects of market volatilities on THORNEY TECHS 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 THORNEY TECHS with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of THORNEY TECHS and BioNTech.
Diversification Opportunities for THORNEY TECHS and BioNTech
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between THORNEY and BioNTech is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding THORNEY TECHS LTD and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and THORNEY TECHS 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 THORNEY TECHS LTD 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 THORNEY TECHS i.e., THORNEY TECHS and BioNTech go up and down completely randomly.
Pair Corralation between THORNEY TECHS and BioNTech
Assuming the 90 days horizon THORNEY TECHS is expected to generate 5.18 times less return on investment than BioNTech. But when comparing it to its historical volatility, THORNEY TECHS LTD is 1.51 times less risky than BioNTech. It trades about 0.03 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 28, 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
THORNEY TECHS LTD vs. BioNTech SE
Performance |
| Timeline |
| THORNEY TECHS LTD |
| BioNTech SE |
THORNEY TECHS and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THORNEY TECHS and BioNTech
The main advantage of trading using opposite THORNEY TECHS and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THORNEY TECHS 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.| THORNEY TECHS vs. Apple Inc | THORNEY TECHS vs. Apple Inc | THORNEY TECHS vs. Apple Inc | THORNEY TECHS vs. Apple Inc |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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