Correlation Between SoftBank Group and BioNTech
Can any of the company-specific risk be diversified away by investing in both SoftBank Group 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 SoftBank Group and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoftBank Group Corp and BioNTech SE, you can compare the effects of market volatilities on SoftBank Group 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 SoftBank Group with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoftBank Group and BioNTech.
Diversification Opportunities for SoftBank Group and BioNTech
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SoftBank and BioNTech is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SoftBank Group Corp and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and SoftBank Group 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 SoftBank Group Corp 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 SoftBank Group i.e., SoftBank Group and BioNTech go up and down completely randomly.
Pair Corralation between SoftBank Group and BioNTech
Assuming the 90 days trading horizon SoftBank Group Corp is expected to generate 1.02 times more return on investment than BioNTech. However, SoftBank Group is 1.02 times more volatile than BioNTech SE. It trades about 0.08 of its potential returns per unit of risk. BioNTech SE is currently generating about -0.01 per unit of risk. If you would invest 917,528 in SoftBank Group Corp on November 27, 2024 and sell it today you would earn a total of 21,472 from holding SoftBank Group Corp or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
SoftBank Group Corp vs. BioNTech SE
Performance |
| Timeline |
| SoftBank Group Corp |
| BioNTech SE |
SoftBank Group and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoftBank Group and BioNTech
The main advantage of trading using opposite SoftBank Group and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoftBank Group 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.| SoftBank Group vs. National Beverage Corp | SoftBank Group vs. Spire Healthcare Group | SoftBank Group vs. Fortune Brands Home | SoftBank Group vs. Monster Beverage Corp |
| BioNTech vs. Sealed Air Corp | BioNTech vs. Finnair Oyj | BioNTech vs. Gruppo MutuiOnline SpA | BioNTech vs. Air Products Chemicals |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |