Correlation Between BioNTech and First Republic
Can any of the company-specific risk be diversified away by investing in both BioNTech and First Republic 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 First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and First Republic Bank, you can compare the effects of market volatilities on BioNTech and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and First Republic.
Diversification Opportunities for BioNTech and First Republic
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BioNTech and First is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of BioNTech i.e., BioNTech and First Republic go up and down completely randomly.
Pair Corralation between BioNTech and First Republic
Given the investment horizon of 90 days BioNTech SE is expected to generate 0.11 times more return on investment than First Republic. However, BioNTech SE is 9.41 times less risky than First Republic. It trades about -0.02 of its potential returns per unit of risk. First Republic Bank is currently generating about -0.08 per unit of risk. If you would invest 17,824 in BioNTech SE on September 3, 2024 and sell it today you would lose (5,985) from holding BioNTech SE or give up 33.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 30.51% |
| Values | Daily Returns |
BioNTech SE vs. First Republic Bank
Performance |
| Timeline |
| BioNTech SE |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BioNTech and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and First Republic
The main advantage of trading using opposite BioNTech and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| First Republic vs. Omni Health | First Republic vs. Vodka Brands Corp | First Republic vs. BioNTech SE | First Republic vs. RadNet Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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