Correlation Between BioNTech and SANLTD

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

By analyzing existing cross correlation between BioNTech SE and SANLTD 335 08 MAR 29, you can compare the effects of market volatilities on BioNTech and SANLTD 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 SANLTD. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and SANLTD.

Diversification Opportunities for BioNTech and SANLTD

-0.05

Correlation Coefficient

BioNTech  SANLTD

Good diversification

The 3 months correlation between BioNTech and SANLTD is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and SANLTD 335 08 MAR 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANLTD 335 08 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 are associated (or correlated) with SANLTD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANLTD 335 08 has no effect on the direction of BioNTech i.e., BioNTech and SANLTD go up and down completely randomly.

Pair Corralation between BioNTech and SANLTD

Given the investment horizon of 90 days BioNTech SE is expected to generate 2.05 times more return on investment than SANLTD. However, BioNTech is 2.05 times more volatile than SANLTD 335 08 MAR 29. It trades about 0.13 of its potential returns per unit of risk. SANLTD 335 08 MAR 29 is currently generating about -0.16 per unit of risk. If you would invest  8,902  in BioNTech SE on September 4, 2024 and sell it today you would earn a total of  2,818  from holding BioNTech SE or generate 31.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	66.67%
Values	Daily Returns

BioNTech SE  vs.  SANLTD 335 08 MAR 29

BioNTech SE

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, BioNTech showed solid returns over the last few months and may actually be approaching a breakup point.

SANLTD 335 08

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SANLTD 335 08 MAR 29 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for SANLTD 335 08 MAR 29 investors.

Pair Trading with BioNTech and SANLTD

The main advantage of trading using opposite BioNTech and SANLTD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, SANLTD 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 SANLTD will offset losses from the drop in SANLTD's long position.

The idea behind BioNTech SE and SANLTD 335 08 MAR 29 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.