Correlation Between UmweltBank and BioNTech
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By analyzing existing cross correlation between UmweltBank AG and BioNTech SE, you can compare the effects of market volatilities on UmweltBank 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 UmweltBank with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of UmweltBank and BioNTech.
Diversification Opportunities for UmweltBank and BioNTech
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UmweltBank and BioNTech is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding UmweltBank AG and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and UmweltBank 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 UmweltBank AG 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 UmweltBank i.e., UmweltBank and BioNTech go up and down completely randomly.
Pair Corralation between UmweltBank and BioNTech
Assuming the 90 days trading horizon UmweltBank AG is expected to under-perform the BioNTech. But the stock apears to be less risky and, when comparing its historical volatility, UmweltBank AG is 2.3 times less risky than BioNTech. The stock trades about -0.14 of its potential returns per unit of risk. The BioNTech SE is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 11,000 in BioNTech SE on October 28, 2024 and sell it today you would earn a total of 600.00 from holding BioNTech SE or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UmweltBank AG vs. BioNTech SE
Performance |
| Timeline |
| UmweltBank AG |
| BioNTech SE |
UmweltBank and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UmweltBank and BioNTech
The main advantage of trading using opposite UmweltBank and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UmweltBank 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.| UmweltBank vs. MidCap Financial Investment | UmweltBank vs. Guangdong Investment Limited | UmweltBank vs. Perseus Mining Limited | UmweltBank vs. MGIC INVESTMENT |
| BioNTech vs. METTLER TOLEDO INTL | BioNTech vs. LODESTAR MIN | BioNTech vs. Carmat SA | BioNTech vs. Air Canada |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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