Correlation Between BIORA THERAPEUTNEW and BioNTech

Can any of the company-specific risk be diversified away by investing in both BIORA THERAPEUTNEW 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 BIORA THERAPEUTNEW and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BIORA THERAPEUTNEW 001 and BioNTech SE, you can compare the effects of market volatilities on BIORA THERAPEUTNEW 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 BIORA THERAPEUTNEW with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIORA THERAPEUTNEW and BioNTech.

Diversification Opportunities for BIORA THERAPEUTNEW and BioNTech

0.0

Correlation Coefficient

BIORA THERAPEUTNEW  BioNTech

Pay attention - limited upside

The 3 months correlation between BIORA and BioNTech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BIORA THERAPEUTNEW 001 and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and BIORA THERAPEUTNEW 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 BIORA THERAPEUTNEW 001 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 BIORA THERAPEUTNEW i.e., BIORA THERAPEUTNEW and BioNTech go up and down completely randomly.

Pair Corralation between BIORA THERAPEUTNEW and BioNTech

Assuming the 90 days trading horizon BIORA THERAPEUTNEW 001 is expected to generate 43.78 times more return on investment than BioNTech. However, BIORA THERAPEUTNEW is 43.78 times more volatile than BioNTech SE. It trades about 0.13 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.02 per unit of risk. If you would invest  4.36  in BIORA THERAPEUTNEW 001 on September 28, 2024 and sell it today you would earn a total of  505.64  from holding BIORA THERAPEUTNEW 001 or generate 11597.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.55%
Values	Daily Returns

BIORA THERAPEUTNEW 001  vs.  BioNTech SE

BIORA THERAPEUTNEW 001

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days BIORA THERAPEUTNEW 001 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly uncertain basic indicators, BIORA THERAPEUTNEW reported solid returns over the last few months and may actually be approaching a breakup point.

BioNTech SE

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, BioNTech is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BIORA THERAPEUTNEW and BioNTech

The main advantage of trading using opposite BIORA THERAPEUTNEW and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIORA THERAPEUTNEW 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.

The idea behind BIORA THERAPEUTNEW 001 and BioNTech SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.