Correlation Between BioNTech and New York
Can any of the company-specific risk be diversified away by investing in both BioNTech and New York 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 New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and New York Mortgage, you can compare the effects of market volatilities on BioNTech and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and New York.
Diversification Opportunities for BioNTech and New York
Weak diversification
The 3 months correlation between BioNTech and New is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and New York Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Mortgage 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Mortgage has no effect on the direction of BioNTech i.e., BioNTech and New York go up and down completely randomly.
Pair Corralation between BioNTech and New York
Given the investment horizon of 90 days BioNTech SE is expected to generate 9.91 times more return on investment than New York. However, BioNTech is 9.91 times more volatile than New York Mortgage. It trades about 0.11 of its potential returns per unit of risk. New York Mortgage is currently generating about 0.07 per unit of risk. If you would invest 10,873 in BioNTech SE on September 12, 2024 and sell it today you would earn a total of 812.00 from holding BioNTech SE or generate 7.47% 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. New York Mortgage
Performance |
| Timeline |
| BioNTech SE |
| New York Mortgage |
BioNTech and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and New York
The main advantage of trading using opposite BioNTech and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| New York vs. Ashford Hospitality Trust | New York vs. Ashford Hospitality Trust | New York vs. Ashford Hospitality Trust | New York vs. Ashford Hospitality Trust |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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