Correlation Between AMERICAN and BioNTech
Specify exactly 2 symbols:
By analyzing existing cross correlation between AMERICAN EXPRESS PANY and BioNTech SE, you can compare the effects of market volatilities on AMERICAN 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 AMERICAN with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMERICAN and BioNTech.
Diversification Opportunities for AMERICAN and BioNTech
Good diversification
The 3 months correlation between AMERICAN and BioNTech is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding AMERICAN EXPRESS PANY and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and AMERICAN 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 AMERICAN EXPRESS PANY 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 AMERICAN i.e., AMERICAN and BioNTech go up and down completely randomly.
Pair Corralation between AMERICAN and BioNTech
Assuming the 90 days trading horizon AMERICAN is expected to generate 10.33 times less return on investment than BioNTech. But when comparing it to its historical volatility, AMERICAN EXPRESS PANY is 9.69 times less risky than BioNTech. It trades about 0.02 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 10,772 in BioNTech SE on September 12, 2024 and sell it today you would earn a total of 913.00 from holding BioNTech SE or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.86% |
| Values | Daily Returns |
AMERICAN EXPRESS PANY vs. BioNTech SE
Performance |
| Timeline |
| AMERICAN EXPRESS PANY |
| BioNTech SE |
AMERICAN and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMERICAN and BioNTech
The main advantage of trading using opposite AMERICAN and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMERICAN 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.| AMERICAN vs. RBC Bearings Incorporated | AMERICAN vs. Kontoor Brands | AMERICAN vs. Jeld Wen Holding | AMERICAN vs. Tyson Foods |
| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |