Correlation Between Apogee Enterprises and BioNTech
Can any of the company-specific risk be diversified away by investing in both Apogee Enterprises 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 Apogee Enterprises and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Enterprises and BioNTech SE, you can compare the effects of market volatilities on Apogee Enterprises 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 Apogee Enterprises with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Enterprises and BioNTech.
Diversification Opportunities for Apogee Enterprises and BioNTech
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apogee and BioNTech is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Enterprises and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Apogee Enterprises 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 Apogee Enterprises 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 Apogee Enterprises i.e., Apogee Enterprises and BioNTech go up and down completely randomly.
Pair Corralation between Apogee Enterprises and BioNTech
Given the investment horizon of 90 days Apogee Enterprises is expected to generate 0.95 times more return on investment than BioNTech. However, Apogee Enterprises is 1.06 times less risky than BioNTech. It trades about 0.09 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.06 per unit of risk. If you would invest 6,286 in Apogee Enterprises on August 30, 2024 and sell it today you would earn a total of 2,092 from holding Apogee Enterprises or generate 33.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apogee Enterprises vs. BioNTech SE
Performance |
| Timeline |
| Apogee Enterprises |
| BioNTech SE |
Apogee Enterprises and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Enterprises and BioNTech
The main advantage of trading using opposite Apogee Enterprises and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Enterprises 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.| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Azek Company | Apogee Enterprises vs. Armstrong World Industries |
| BioNTech vs. Ikena Oncology | BioNTech vs. Eliem Therapeutics | BioNTech vs. HCW Biologics | BioNTech vs. Tempest Therapeutics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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