Correlation Between BioNTech and CEOTRONICS

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

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

Diversification Opportunities for BioNTech and CEOTRONICS

-0.28

Correlation Coefficient

BioNTech  CEOTRONICS

Very good diversification

The 3 months correlation between BioNTech and CEOTRONICS is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS 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 CEOTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS has no effect on the direction of BioNTech i.e., BioNTech and CEOTRONICS go up and down completely randomly.

Pair Corralation between BioNTech and CEOTRONICS

Assuming the 90 days trading horizon BioNTech SE is expected to under-perform the CEOTRONICS. But the stock apears to be less risky and, when comparing its historical volatility, BioNTech SE is 1.19 times less risky than CEOTRONICS. The stock trades about -0.03 of its potential returns per unit of risk. The CEOTRONICS is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,400  in CEOTRONICS on April 24, 2025 and sell it today you would lose (75.00) from holding CEOTRONICS or give up 5.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BioNTech SE  vs.  CEOTRONICS

BioNTech SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioNTech SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BioNTech is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

CEOTRONICS

Risk-Adjusted Performance

Very Weak

Over the last 90 days CEOTRONICS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CEOTRONICS is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BioNTech and CEOTRONICS

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

The idea behind BioNTech SE and CEOTRONICS 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.