Correlation Between BioNTech and Modine Manufacturing
Can any of the company-specific risk be diversified away by investing in both BioNTech and Modine Manufacturing 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 Modine Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Modine Manufacturing, you can compare the effects of market volatilities on BioNTech and Modine Manufacturing 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 Modine Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Modine Manufacturing.
Diversification Opportunities for BioNTech and Modine Manufacturing
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BioNTech and Modine is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Modine Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modine Manufacturing 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 Modine Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modine Manufacturing has no effect on the direction of BioNTech i.e., BioNTech and Modine Manufacturing go up and down completely randomly.
Pair Corralation between BioNTech and Modine Manufacturing
Given the investment horizon of 90 days BioNTech is expected to generate 6.11 times less return on investment than Modine Manufacturing. But when comparing it to its historical volatility, BioNTech SE is 1.39 times less risky than Modine Manufacturing. It trades about 0.02 of its potential returns per unit of risk. Modine Manufacturing is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 6,045 in Modine Manufacturing on September 20, 2024 and sell it today you would earn a total of 6,722 from holding Modine Manufacturing or generate 111.2% 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. Modine Manufacturing
Performance |
| Timeline |
| BioNTech SE |
| Modine Manufacturing |
BioNTech and Modine Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Modine Manufacturing
The main advantage of trading using opposite BioNTech and Modine Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Modine Manufacturing 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 Modine Manufacturing will offset losses from the drop in Modine Manufacturing's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Modine Manufacturing vs. Ford Motor | Modine Manufacturing vs. General Motors | Modine Manufacturing vs. Goodyear Tire Rubber | Modine Manufacturing vs. Li Auto |
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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