Correlation Between BioNTech and Interactive Brokers
Can any of the company-specific risk be diversified away by investing in both BioNTech and Interactive Brokers 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 Interactive Brokers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Interactive Brokers Group, you can compare the effects of market volatilities on BioNTech and Interactive Brokers 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 Interactive Brokers. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Interactive Brokers.
Diversification Opportunities for BioNTech and Interactive Brokers
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between BioNTech and Interactive is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Interactive Brokers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interactive Brokers 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 Interactive Brokers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interactive Brokers has no effect on the direction of BioNTech i.e., BioNTech and Interactive Brokers go up and down completely randomly.
Pair Corralation between BioNTech and Interactive Brokers
Given the investment horizon of 90 days BioNTech SE is expected to under-perform the Interactive Brokers. In addition to that, BioNTech is 1.41 times more volatile than Interactive Brokers Group. It trades about -0.01 of its total potential returns per unit of risk. Interactive Brokers Group is currently generating about 0.12 per unit of volatility. If you would invest 7,225 in Interactive Brokers Group on September 14, 2024 and sell it today you would earn a total of 10,806 from holding Interactive Brokers Group or generate 149.56% 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. Interactive Brokers Group
Performance |
| Timeline |
| BioNTech SE |
| Interactive Brokers |
BioNTech and Interactive Brokers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Interactive Brokers
The main advantage of trading using opposite BioNTech and Interactive Brokers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Interactive Brokers 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 Interactive Brokers will offset losses from the drop in Interactive Brokers' long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Interactive Brokers vs. Lifevantage | Interactive Brokers vs. Willamette Valley Vineyards | Interactive Brokers vs. Marfrig Global Foods | Interactive Brokers vs. Hf Foods Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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