Correlation Between BioNTech and Bowhead Specialty
Can any of the company-specific risk be diversified away by investing in both BioNTech and Bowhead Specialty 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 Bowhead Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Bowhead Specialty Holdings, you can compare the effects of market volatilities on BioNTech and Bowhead Specialty 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 Bowhead Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Bowhead Specialty.
Diversification Opportunities for BioNTech and Bowhead Specialty
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between BioNTech and Bowhead is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Bowhead Specialty Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowhead Specialty 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 Bowhead Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowhead Specialty has no effect on the direction of BioNTech i.e., BioNTech and Bowhead Specialty go up and down completely randomly.
Pair Corralation between BioNTech and Bowhead Specialty
Given the investment horizon of 90 days BioNTech SE is expected to generate 2.01 times more return on investment than Bowhead Specialty. However, BioNTech is 2.01 times more volatile than Bowhead Specialty Holdings. It trades about 0.11 of its potential returns per unit of risk. Bowhead Specialty Holdings is currently generating about -0.13 per unit of risk. If you would invest 11,579 in BioNTech SE on November 4, 2024 and sell it today you would earn a total of 798.00 from holding BioNTech SE or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Bowhead Specialty Holdings
Performance |
| Timeline |
| BioNTech SE |
| Bowhead Specialty |
BioNTech and Bowhead Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Bowhead Specialty
The main advantage of trading using opposite BioNTech and Bowhead Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Bowhead Specialty 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 Bowhead Specialty will offset losses from the drop in Bowhead Specialty's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Bowhead Specialty vs. Playtech plc | Bowhead Specialty vs. Mattel Inc | Bowhead Specialty vs. Northstar Clean Technologies | Bowhead Specialty vs. CleanGo Innovations |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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