Correlation Between BioNTech and Dow Jones
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By analyzing existing cross correlation between BioNTech SE and Dow Jones Industrial, you can compare the effects of market volatilities on BioNTech and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Dow Jones.
Diversification Opportunities for BioNTech and Dow Jones
Very weak diversification
The 3 months correlation between BioNTech and Dow is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of BioNTech i.e., BioNTech and Dow Jones go up and down completely randomly.
Pair Corralation between BioNTech and Dow Jones
Assuming the 90 days trading horizon BioNTech SE is expected to generate 4.13 times more return on investment than Dow Jones. However, BioNTech is 4.13 times more volatile than Dow Jones Industrial. It trades about 0.07 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of risk. If you would invest 10,390 in BioNTech SE on August 25, 2024 and sell it today you would earn a total of 510.00 from holding BioNTech SE or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BioNTech SE vs. Dow Jones Industrial
Performance |
| Timeline |
BioNTech and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
BioNTech SE
Pair trading matchups for BioNTech
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with BioNTech and Dow Jones
The main advantage of trading using opposite BioNTech and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| BioNTech vs. Beazer Homes USA | BioNTech vs. Taylor Morrison Home | BioNTech vs. Hisense Home Appliances | BioNTech vs. Autohome ADR |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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