Correlation Between BIONTECH and Autodesk
Can any of the company-specific risk be diversified away by investing in both BIONTECH and Autodesk 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 BIONTECH and Autodesk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIONTECH SE DRN and Autodesk, you can compare the effects of market volatilities on BIONTECH and Autodesk 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 BIONTECH with a short position of Autodesk. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIONTECH and Autodesk.
Diversification Opportunities for BIONTECH and Autodesk
Very weak diversification
The 3 months correlation between BIONTECH and Autodesk is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding BIONTECH SE DRN and Autodesk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autodesk and BIONTECH 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 BIONTECH SE DRN are associated (or correlated) with Autodesk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autodesk has no effect on the direction of BIONTECH i.e., BIONTECH and Autodesk go up and down completely randomly.
Pair Corralation between BIONTECH and Autodesk
Assuming the 90 days trading horizon BIONTECH is expected to generate 1.55 times less return on investment than Autodesk. In addition to that, BIONTECH is 1.47 times more volatile than Autodesk. It trades about 0.05 of its total potential returns per unit of risk. Autodesk is currently generating about 0.11 per unit of volatility. If you would invest 28,650 in Autodesk on September 25, 2024 and sell it today you would earn a total of 17,160 from holding Autodesk or generate 59.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.6% |
Values | Daily Returns |
BIONTECH SE DRN vs. Autodesk
Performance |
Timeline |
BIONTECH SE DRN |
Autodesk |
BIONTECH and Autodesk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BIONTECH and Autodesk
The main advantage of trading using opposite BIONTECH and Autodesk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIONTECH position performs unexpectedly, Autodesk 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 Autodesk will offset losses from the drop in Autodesk's long position.BIONTECH vs. Novo Nordisk AS | BIONTECH vs. Vertex Pharmaceuticals Incorporated | BIONTECH vs. Moderna | BIONTECH vs. BeiGene |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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