Correlation Between Sarepta Therapeutics and BioNTech
Can any of the company-specific risk be diversified away by investing in both Sarepta Therapeutics 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 Sarepta Therapeutics and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sarepta Therapeutics and BioNTech SE, you can compare the effects of market volatilities on Sarepta Therapeutics 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 Sarepta Therapeutics with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sarepta Therapeutics and BioNTech.
Diversification Opportunities for Sarepta Therapeutics and BioNTech
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sarepta and BioNTech is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sarepta Therapeutics and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Sarepta Therapeutics 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 Sarepta Therapeutics 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 Sarepta Therapeutics i.e., Sarepta Therapeutics and BioNTech go up and down completely randomly.
Pair Corralation between Sarepta Therapeutics and BioNTech
Given the investment horizon of 90 days Sarepta Therapeutics is expected to generate 1.33 times more return on investment than BioNTech. However, Sarepta Therapeutics is 1.33 times more volatile than BioNTech SE. It trades about 0.04 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.0 per unit of risk. If you would invest 12,555 in Sarepta Therapeutics on February 3, 2024 and sell it today you would earn a total of 508.00 from holding Sarepta Therapeutics or generate 4.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sarepta Therapeutics vs. BioNTech SE
Performance |
Timeline |
Sarepta Therapeutics |
BioNTech SE |
Sarepta Therapeutics and BioNTech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sarepta Therapeutics and BioNTech
The main advantage of trading using opposite Sarepta Therapeutics and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sarepta Therapeutics 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.Sarepta Therapeutics vs. Senti Biosciences | Sarepta Therapeutics vs. Pasithea Therapeutics Corp | Sarepta Therapeutics vs. Quoin Pharmaceuticals Ltd |
BioNTech vs. Senti Biosciences | BioNTech vs. Pasithea Therapeutics Corp | BioNTech vs. Quoin Pharmaceuticals Ltd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |