Correlation Between BioNTech and GoldMining
Can any of the company-specific risk be diversified away by investing in both BioNTech and GoldMining 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 GoldMining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and GoldMining, you can compare the effects of market volatilities on BioNTech and GoldMining 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 GoldMining. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and GoldMining.
Diversification Opportunities for BioNTech and GoldMining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BioNTech and GoldMining is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and GoldMining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoldMining 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 GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoldMining has no effect on the direction of BioNTech i.e., BioNTech and GoldMining go up and down completely randomly.
Pair Corralation between BioNTech and GoldMining
Assuming the 90 days trading horizon BioNTech SE is expected to generate 1.1 times more return on investment than GoldMining. However, BioNTech is 1.1 times more volatile than GoldMining. It trades about 0.04 of its potential returns per unit of risk. GoldMining is currently generating about -0.21 per unit of risk. If you would invest 11,374 in BioNTech SE on August 28, 2024 and sell it today you would earn a total of 236.00 from holding BioNTech SE or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
BioNTech SE vs. GoldMining
Performance |
| Timeline |
| BioNTech SE |
| GoldMining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
BioNTech and GoldMining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and GoldMining
The main advantage of trading using opposite BioNTech and GoldMining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, GoldMining 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 GoldMining will offset losses from the drop in GoldMining's long position.| BioNTech vs. Primorus Investments plc | BioNTech vs. FC Investment Trust | BioNTech vs. Deltex Medical Group | BioNTech vs. Federal Realty Investment |
| GoldMining vs. Samsung Electronics Co | GoldMining vs. Samsung Electronics Co | GoldMining vs. Hyundai Motor | GoldMining vs. Toyota Motor Corp |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |