Correlation Between BioNTech and FRONTEO

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

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

Diversification Opportunities for BioNTech and FRONTEO

0.0

Correlation Coefficient

BioNTech  FRONTEO

Pay attention - limited upside

The 3 months correlation between BioNTech and FRONTEO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and FRONTEO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRONTEO 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 FRONTEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRONTEO has no effect on the direction of BioNTech i.e., BioNTech and FRONTEO go up and down completely randomly.

Pair Corralation between BioNTech and FRONTEO

If you would invest  8,994  in BioNTech SE on February 4, 2024 and sell it today you would earn a total of  278.00  from holding BioNTech SE or generate 3.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BioNTech SE  vs.  FRONTEO

BioNTech SE

Risk-Adjusted Performance

0 of 100

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 fairly strong basic indicators, BioNTech is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

FRONTEO

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FRONTEO has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, FRONTEO is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with BioNTech and FRONTEO

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

The idea behind BioNTech SE and FRONTEO 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.