Correlation Between BioNTech and AJ Bell
Can any of the company-specific risk be diversified away by investing in both BioNTech and AJ Bell 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 AJ Bell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and AJ Bell plc, you can compare the effects of market volatilities on BioNTech and AJ Bell 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 AJ Bell. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and AJ Bell.
Diversification Opportunities for BioNTech and AJ Bell
Significant diversification
The 3 months correlation between BioNTech and AJB is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and AJ Bell plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AJ Bell plc 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 AJ Bell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AJ Bell plc has no effect on the direction of BioNTech i.e., BioNTech and AJ Bell go up and down completely randomly.
Pair Corralation between BioNTech and AJ Bell
Assuming the 90 days trading horizon BioNTech SE is expected to under-perform the AJ Bell. In addition to that, BioNTech is 1.31 times more volatile than AJ Bell plc. It trades about -0.02 of its total potential returns per unit of risk. AJ Bell plc is currently generating about 0.04 per unit of volatility. If you would invest 33,742 in AJ Bell plc on September 12, 2024 and sell it today you would earn a total of 13,908 from holding AJ Bell plc or generate 41.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.42% |
| Values | Daily Returns |
BioNTech SE vs. AJ Bell plc
Performance |
| Timeline |
| BioNTech SE |
| AJ Bell plc |
BioNTech and AJ Bell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and AJ Bell
The main advantage of trading using opposite BioNTech and AJ Bell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, AJ Bell 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 AJ Bell will offset losses from the drop in AJ Bell's long position.| BioNTech vs. Mulberry Group PLC | BioNTech vs. Ikigai Ventures | BioNTech vs. Neometals | BioNTech vs. Coor Service Management |
| AJ Bell vs. BioNTech SE | AJ Bell vs. Raytheon Technologies Corp | AJ Bell vs. Concurrent Technologies Plc | AJ Bell vs. Roper Technologies |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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