Correlation Between BioNTech and Jacobs Solutions
Can any of the company-specific risk be diversified away by investing in both BioNTech and Jacobs Solutions 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 Jacobs Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Jacobs Solutions, you can compare the effects of market volatilities on BioNTech and Jacobs Solutions 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 Jacobs Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Jacobs Solutions.
Diversification Opportunities for BioNTech and Jacobs Solutions
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BioNTech and Jacobs is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Jacobs Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacobs Solutions 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 Jacobs Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacobs Solutions has no effect on the direction of BioNTech i.e., BioNTech and Jacobs Solutions go up and down completely randomly.
Pair Corralation between BioNTech and Jacobs Solutions
Given the investment horizon of 90 days BioNTech SE is expected to generate 1.67 times more return on investment than Jacobs Solutions. However, BioNTech is 1.67 times more volatile than Jacobs Solutions. It trades about 0.1 of its potential returns per unit of risk. Jacobs Solutions is currently generating about -0.02 per unit of risk. If you would invest 11,326 in BioNTech SE on August 28, 2024 and sell it today you would earn a total of 750.00 from holding BioNTech SE or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Jacobs Solutions
Performance |
| Timeline |
| BioNTech SE |
| Jacobs Solutions |
BioNTech and Jacobs Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Jacobs Solutions
The main advantage of trading using opposite BioNTech and Jacobs Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Jacobs Solutions 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 Jacobs Solutions will offset losses from the drop in Jacobs Solutions' long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Jacobs Solutions vs. Innovate Corp | Jacobs Solutions vs. Energy Services | Jacobs Solutions vs. Api Group Corp | Jacobs Solutions vs. Topbuild Corp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |