Correlation Between BIONTECH and Healthpeak Properties
Can any of the company-specific risk be diversified away by investing in both BIONTECH and Healthpeak Properties 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 Healthpeak Properties 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 Healthpeak Properties, you can compare the effects of market volatilities on BIONTECH and Healthpeak Properties 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 Healthpeak Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIONTECH and Healthpeak Properties.
Diversification Opportunities for BIONTECH and Healthpeak Properties
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BIONTECH and Healthpeak is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding BIONTECH SE DRN and Healthpeak Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthpeak Properties 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 Healthpeak Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthpeak Properties has no effect on the direction of BIONTECH i.e., BIONTECH and Healthpeak Properties go up and down completely randomly.
Pair Corralation between BIONTECH and Healthpeak Properties
Assuming the 90 days trading horizon BIONTECH SE DRN is expected to generate 1.86 times more return on investment than Healthpeak Properties. However, BIONTECH is 1.86 times more volatile than Healthpeak Properties. It trades about 0.07 of its potential returns per unit of risk. Healthpeak Properties is currently generating about 0.01 per unit of risk. If you would invest 3,989 in BIONTECH SE DRN on September 26, 2024 and sell it today you would earn a total of 399.00 from holding BIONTECH SE DRN or generate 10.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BIONTECH SE DRN vs. Healthpeak Properties
Performance |
Timeline |
BIONTECH SE DRN |
Healthpeak Properties |
BIONTECH and Healthpeak Properties Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BIONTECH and Healthpeak Properties
The main advantage of trading using opposite BIONTECH and Healthpeak Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIONTECH position performs unexpectedly, Healthpeak Properties 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 Healthpeak Properties will offset losses from the drop in Healthpeak Properties' long position.BIONTECH vs. UnitedHealth Group Incorporated | BIONTECH vs. Arrow Electronics, | BIONTECH vs. Monster Beverage | BIONTECH vs. MAHLE Metal Leve |
Healthpeak Properties vs. V1TA34 | Healthpeak Properties vs. BIONTECH SE DRN | Healthpeak Properties vs. AvalonBay Communities | Healthpeak Properties vs. N1WG34 |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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