Correlation Between BioNTech and Nasdaq
Can any of the company-specific risk be diversified away by investing in both BioNTech and Nasdaq 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 Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Nasdaq Inc, you can compare the effects of market volatilities on BioNTech and Nasdaq 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 Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Nasdaq.
Diversification Opportunities for BioNTech and Nasdaq
Good diversification
The 3 months correlation between BioNTech and Nasdaq is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Nasdaq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Inc 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 Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq Inc has no effect on the direction of BioNTech i.e., BioNTech and Nasdaq go up and down completely randomly.
Pair Corralation between BioNTech and Nasdaq
Given the investment horizon of 90 days BioNTech SE is expected to generate 3.63 times more return on investment than Nasdaq. However, BioNTech is 3.63 times more volatile than Nasdaq Inc. It trades about 0.17 of its potential returns per unit of risk. Nasdaq Inc is currently generating about 0.15 per unit of risk. If you would invest 10,632 in BioNTech SE on September 13, 2024 and sell it today you would earn a total of 1,302 from holding BioNTech SE or generate 12.25% 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. Nasdaq Inc
Performance |
| Timeline |
| BioNTech SE |
| Nasdaq Inc |
BioNTech and Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Nasdaq
The main advantage of trading using opposite BioNTech and Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Nasdaq 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 Nasdaq will offset losses from the drop in Nasdaq's long position.| BioNTech vs. Puma Biotechnology | BioNTech vs. Iovance Biotherapeutics | BioNTech vs. Sarepta Therapeutics | BioNTech vs. Day One Biopharmaceuticals |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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