Correlation Between BioNTech and Games Workshop
Can any of the company-specific risk be diversified away by investing in both BioNTech and Games Workshop 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 Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Games Workshop Group, you can compare the effects of market volatilities on BioNTech and Games Workshop 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 Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Games Workshop.
Diversification Opportunities for BioNTech and Games Workshop
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BioNTech and Games is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Games Workshop Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Games Workshop Group 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 Games Workshop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Games Workshop Group has no effect on the direction of BioNTech i.e., BioNTech and Games Workshop go up and down completely randomly.
Pair Corralation between BioNTech and Games Workshop
Assuming the 90 days trading horizon BioNTech is expected to generate 2.61 times less return on investment than Games Workshop. In addition to that, BioNTech is 1.05 times more volatile than Games Workshop Group. It trades about 0.07 of its total potential returns per unit of risk. Games Workshop Group is currently generating about 0.19 per unit of volatility. If you would invest 1,194,000 in Games Workshop Group on August 31, 2024 and sell it today you would earn a total of 193,000 from holding Games Workshop Group or generate 16.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BioNTech SE vs. Games Workshop Group
Performance |
| Timeline |
| BioNTech SE |
| Games Workshop Group |
BioNTech and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Games Workshop
The main advantage of trading using opposite BioNTech and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Games Workshop 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 Games Workshop will offset losses from the drop in Games Workshop's long position.| BioNTech vs. National Bank of | BioNTech vs. Infrastrutture Wireless Italiane | BioNTech vs. Adriatic Metals | BioNTech vs. Jacquet Metal Service |
| Games Workshop vs. Intuitive Investments Group | Games Workshop vs. Host Hotels Resorts | Games Workshop vs. FC Investment Trust | Games Workshop vs. Bankers Investment Trust |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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