Correlation Between Tradegate and BioNTech

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

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

Diversification Opportunities for Tradegate and BioNTech

0.28

Correlation Coefficient

Tradegate  BioNTech

Modest diversification

The 3 months correlation between Tradegate and BioNTech is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Tradegate 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 Tradegate AG Wertpapierhandelsbank 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 Tradegate i.e., Tradegate and BioNTech go up and down completely randomly.

Pair Corralation between Tradegate and BioNTech

Assuming the 90 days horizon Tradegate is expected to generate 5.48 times less return on investment than BioNTech. But when comparing it to its historical volatility, Tradegate AG Wertpapierhandelsbank is 3.56 times less risky than BioNTech. It trades about 0.03 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  8,520  in BioNTech SE on April 2, 2025 and sell it today you would earn a total of  610.00  from holding BioNTech SE or generate 7.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Tradegate AG Wertpapierhandels  vs.  BioNTech SE

Tradegate AG Wertpap

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tradegate AG Wertpapierhandelsbank are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Tradegate is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

BioNTech SE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, BioNTech may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Tradegate and BioNTech

The main advantage of trading using opposite Tradegate and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate 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.

The idea behind Tradegate AG Wertpapierhandelsbank and BioNTech SE 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.

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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.