Correlation Between BioNTech and Beowulf Mining
Can any of the company-specific risk be diversified away by investing in both BioNTech and Beowulf Mining 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 Beowulf Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Beowulf Mining, you can compare the effects of market volatilities on BioNTech and Beowulf Mining 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 Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Beowulf Mining.
Diversification Opportunities for BioNTech and Beowulf Mining
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BioNTech and Beowulf is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Beowulf Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining 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 Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining has no effect on the direction of BioNTech i.e., BioNTech and Beowulf Mining go up and down completely randomly.
Pair Corralation between BioNTech and Beowulf Mining
Assuming the 90 days trading horizon BioNTech SE is expected to generate 1.78 times more return on investment than Beowulf Mining. However, BioNTech is 1.78 times more volatile than Beowulf Mining. It trades about 0.13 of its potential returns per unit of risk. Beowulf Mining is currently generating about -0.15 per unit of risk. If you would invest 10,811 in BioNTech SE on September 13, 2024 and sell it today you would earn a total of 1,104 from holding BioNTech SE or generate 10.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Beowulf Mining
Performance |
| Timeline |
| BioNTech SE |
| Beowulf Mining |
BioNTech and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Beowulf Mining
The main advantage of trading using opposite BioNTech and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Beowulf Mining 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| BioNTech vs. Beowulf Mining | BioNTech vs. CompuGroup Medical AG | BioNTech vs. Eastinco Mining Exploration | BioNTech vs. Endeavour Mining Corp |
| Beowulf Mining vs. Givaudan SA | Beowulf Mining vs. Antofagasta PLC | Beowulf Mining vs. Ferrexpo PLC | Beowulf Mining vs. Atalaya Mining |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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