Correlation Between CarsalesCom and BioNTech
Can any of the company-specific risk be diversified away by investing in both CarsalesCom 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 CarsalesCom and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CarsalesCom Ltd ADR and BioNTech SE, you can compare the effects of market volatilities on CarsalesCom 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 CarsalesCom with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CarsalesCom and BioNTech.
Diversification Opportunities for CarsalesCom and BioNTech
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CarsalesCom and BioNTech is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding CarsalesCom Ltd ADR and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and CarsalesCom 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 CarsalesCom Ltd ADR 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 CarsalesCom i.e., CarsalesCom and BioNTech go up and down completely randomly.
Pair Corralation between CarsalesCom and BioNTech
Assuming the 90 days horizon CarsalesCom is expected to generate 1.36 times less return on investment than BioNTech. In addition to that, CarsalesCom is 1.1 times more volatile than BioNTech SE. It trades about 0.07 of its total potential returns per unit of risk. BioNTech SE is currently generating about 0.11 per unit of volatility. If you would invest 9,855 in BioNTech SE on April 24, 2025 and sell it today you would earn a total of 1,289 from holding BioNTech SE or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CarsalesCom Ltd ADR vs. BioNTech SE
Performance |
| Timeline |
| CarsalesCom ADR |
| BioNTech SE |
CarsalesCom and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CarsalesCom and BioNTech
The main advantage of trading using opposite CarsalesCom and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CarsalesCom 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.| CarsalesCom vs. Auto Trader Group | CarsalesCom vs. Weibo Corp | CarsalesCom vs. Snap Inc | CarsalesCom vs. Trump Media Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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