Correlation Between Service and BioNTech
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By analyzing existing cross correlation between Service Properties Trust and BioNTech SE, you can compare the effects of market volatilities on Service 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 Service with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Service and BioNTech.
Diversification Opportunities for Service and BioNTech
Good diversification
The 3 months correlation between Service and BioNTech is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Service Properties Trust and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Service 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 Service Properties Trust 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 Service i.e., Service and BioNTech go up and down completely randomly.
Pair Corralation between Service and BioNTech
Assuming the 90 days trading horizon Service Properties Trust is expected to generate 18.86 times more return on investment than BioNTech. However, Service is 18.86 times more volatile than BioNTech SE. It trades about 0.04 of its potential returns per unit of risk. BioNTech SE is currently generating about -0.01 per unit of risk. If you would invest 7,886 in Service Properties Trust on September 14, 2024 and sell it today you would earn a total of 114.00 from holding Service Properties Trust or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.95% |
| Values | Daily Returns |
Service Properties Trust vs. BioNTech SE
Performance |
| Timeline |
| Service Properties Trust |
| BioNTech SE |
Service and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Service and BioNTech
The main advantage of trading using opposite Service and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Service 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.| Service vs. BioNTech SE | Service vs. Highway Holdings Limited | Service vs. Catalyst Pharmaceuticals | Service vs. Park Ohio Holdings |
| 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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