Correlation Between BioNTech and Neogen
Can any of the company-specific risk be diversified away by investing in both BioNTech and Neogen 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 Neogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Neogen, you can compare the effects of market volatilities on BioNTech and Neogen 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 Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Neogen.
Diversification Opportunities for BioNTech and Neogen
Very good diversification
The 3 months correlation between BioNTech and Neogen is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen 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 Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of BioNTech i.e., BioNTech and Neogen go up and down completely randomly.
Pair Corralation between BioNTech and Neogen
Given the investment horizon of 90 days BioNTech SE is expected to generate 1.02 times more return on investment than Neogen. However, BioNTech is 1.02 times more volatile than Neogen. It trades about 0.06 of its potential returns per unit of risk. Neogen is currently generating about 0.02 per unit of risk. If you would invest 10,287 in BioNTech SE on August 30, 2024 and sell it today you would earn a total of 1,785 from holding BioNTech SE or generate 17.35% 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. Neogen
Performance |
| Timeline |
| BioNTech SE |
| Neogen |
BioNTech and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Neogen
The main advantage of trading using opposite BioNTech and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.| BioNTech vs. Ikena Oncology | BioNTech vs. Eliem Therapeutics | BioNTech vs. HCW Biologics | BioNTech vs. Tempest Therapeutics |
| Neogen vs. ReShape Lifesciences | Neogen vs. Bone Biologics Corp | Neogen vs. Tivic Health Systems | Neogen vs. Nuwellis |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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