Correlation Between VirnetX Holding and BioNTech
Can any of the company-specific risk be diversified away by investing in both VirnetX Holding 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 VirnetX Holding and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VirnetX Holding Corp and BioNTech SE, you can compare the effects of market volatilities on VirnetX Holding 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 VirnetX Holding with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of VirnetX Holding and BioNTech.
Diversification Opportunities for VirnetX Holding and BioNTech
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between VirnetX and BioNTech is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding VirnetX Holding Corp and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and VirnetX Holding 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 VirnetX Holding Corp 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 VirnetX Holding i.e., VirnetX Holding and BioNTech go up and down completely randomly.
Pair Corralation between VirnetX Holding and BioNTech
Considering the 90-day investment horizon VirnetX Holding Corp is expected to under-perform the BioNTech. But the stock apears to be less risky and, when comparing its historical volatility, VirnetX Holding Corp is 1.16 times less risky than BioNTech. The stock trades about -0.21 of its potential returns per unit of risk. The BioNTech SE is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 10,897 in BioNTech SE on September 3, 2024 and sell it today you would earn a total of 942.00 from holding BioNTech SE or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VirnetX Holding Corp vs. BioNTech SE
Performance |
| Timeline |
| VirnetX Holding Corp |
| BioNTech SE |
VirnetX Holding and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VirnetX Holding and BioNTech
The main advantage of trading using opposite VirnetX Holding and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VirnetX Holding 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.| VirnetX Holding vs. Hub Cyber Security | VirnetX Holding vs. authID Inc | VirnetX Holding vs. Aurora Mobile | VirnetX Holding vs. Taoping |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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