Correlation Between BioNTech and Anheuser Busch
Can any of the company-specific risk be diversified away by investing in both BioNTech and Anheuser Busch 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 Anheuser Busch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Anheuser Busch Inbev, you can compare the effects of market volatilities on BioNTech and Anheuser Busch 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 Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Anheuser Busch.
Diversification Opportunities for BioNTech and Anheuser Busch
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioNTech and Anheuser is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Anheuser Busch Inbev in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anheuser Busch Inbev 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 Anheuser Busch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anheuser Busch Inbev has no effect on the direction of BioNTech i.e., BioNTech and Anheuser Busch go up and down completely randomly.
Pair Corralation between BioNTech and Anheuser Busch
Given the investment horizon of 90 days BioNTech SE is expected to under-perform the Anheuser Busch. In addition to that, BioNTech is 2.3 times more volatile than Anheuser Busch Inbev. It trades about -0.1 of its total potential returns per unit of risk. Anheuser Busch Inbev is currently generating about 0.52 per unit of volatility. If you would invest 4,615 in Anheuser Busch Inbev on December 11, 2024 and sell it today you would earn a total of 1,631 from holding Anheuser Busch Inbev or generate 35.34% 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. Anheuser Busch Inbev
Performance |
| Timeline |
| BioNTech SE |
| Anheuser Busch Inbev |
BioNTech and Anheuser Busch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Anheuser Busch
The main advantage of trading using opposite BioNTech and Anheuser Busch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Anheuser Busch 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 Anheuser Busch will offset losses from the drop in Anheuser Busch's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Anheuser Busch vs. Boston Beer | Anheuser Busch vs. Molson Coors Beverage | Anheuser Busch vs. Heineken NV | Anheuser Busch vs. Ambev SA ADR |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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