Correlation Between BioNTech and Fomento Economico
Can any of the company-specific risk be diversified away by investing in both BioNTech and Fomento Economico 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 Fomento Economico into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Fomento Economico Mexicano, you can compare the effects of market volatilities on BioNTech and Fomento Economico 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 Fomento Economico. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Fomento Economico.
Diversification Opportunities for BioNTech and Fomento Economico
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between BioNTech and Fomento is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Fomento Economico Mexicano in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fomento Economico 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 Fomento Economico. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fomento Economico has no effect on the direction of BioNTech i.e., BioNTech and Fomento Economico go up and down completely randomly.
Pair Corralation between BioNTech and Fomento Economico
Given the investment horizon of 90 days BioNTech SE is expected to generate 2.39 times more return on investment than Fomento Economico. However, BioNTech is 2.39 times more volatile than Fomento Economico Mexicano. It trades about 0.08 of its potential returns per unit of risk. Fomento Economico Mexicano is currently generating about -0.24 per unit of risk. If you would invest 11,310 in BioNTech SE on September 1, 2024 and sell it today you would earn a total of 529.00 from holding BioNTech SE or generate 4.68% 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. Fomento Economico Mexicano
Performance |
| Timeline |
| BioNTech SE |
| Fomento Economico |
BioNTech and Fomento Economico Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Fomento Economico
The main advantage of trading using opposite BioNTech and Fomento Economico positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Fomento Economico 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 Fomento Economico will offset losses from the drop in Fomento Economico's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Fomento Economico vs. Ambev SA ADR | Fomento Economico vs. Boston Beer | Fomento Economico vs. Carlsberg AS | Fomento Economico vs. Molson Coors Brewing |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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