Correlation Between Aegon NV and BioNTech
Can any of the company-specific risk be diversified away by investing in both Aegon NV 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 Aegon NV and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegon NV ADR and BioNTech SE, you can compare the effects of market volatilities on Aegon NV 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 Aegon NV with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegon NV and BioNTech.
Diversification Opportunities for Aegon NV and BioNTech
Very weak diversification
The 3 months correlation between Aegon and BioNTech is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aegon NV ADR and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Aegon NV 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 Aegon NV ADR 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 Aegon NV i.e., Aegon NV and BioNTech go up and down completely randomly.
Pair Corralation between Aegon NV and BioNTech
Considering the 90-day investment horizon Aegon NV ADR is expected to under-perform the BioNTech. But the stock apears to be less risky and, when comparing its historical volatility, Aegon NV ADR is 2.26 times less risky than BioNTech. The stock trades about -0.1 of its potential returns per unit of risk. The BioNTech SE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 11,173 in BioNTech SE on August 25, 2024 and sell it today you would earn a total of 140.00 from holding BioNTech SE or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aegon NV ADR vs. BioNTech SE
Performance |
| Timeline |
| Aegon NV ADR |
| BioNTech SE |
Aegon NV and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegon NV and BioNTech
The main advantage of trading using opposite Aegon NV and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegon NV 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.| Aegon NV vs. Hartford Financial Services | Aegon NV vs. Goosehead Insurance | Aegon NV vs. International General Insurance | Aegon NV vs. Enstar Group Limited |
| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |