Correlation Between BioNTech and Southland Holdings
Can any of the company-specific risk be diversified away by investing in both BioNTech and Southland Holdings 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 Southland Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Southland Holdings, you can compare the effects of market volatilities on BioNTech and Southland Holdings 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 Southland Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Southland Holdings.
Diversification Opportunities for BioNTech and Southland Holdings
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioNTech and Southland is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Southland Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southland Holdings 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 Southland Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southland Holdings has no effect on the direction of BioNTech i.e., BioNTech and Southland Holdings go up and down completely randomly.
Pair Corralation between BioNTech and Southland Holdings
Given the investment horizon of 90 days BioNTech is expected to generate 3.82 times less return on investment than Southland Holdings. But when comparing it to its historical volatility, BioNTech SE is 1.26 times less risky than Southland Holdings. It trades about 0.12 of its potential returns per unit of risk. Southland Holdings is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 250.00 in Southland Holdings on September 14, 2024 and sell it today you would earn a total of 98.00 from holding Southland Holdings or generate 39.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Southland Holdings
Performance |
| Timeline |
| BioNTech SE |
| Southland Holdings |
BioNTech and Southland Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Southland Holdings
The main advantage of trading using opposite BioNTech and Southland Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Southland Holdings 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 Southland Holdings will offset losses from the drop in Southland Holdings' long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Southland Holdings vs. Arrow Electronics | Southland Holdings vs. NETGEAR | Southland Holdings vs. Grupo Televisa SAB | Southland Holdings vs. Summit Hotel Properties |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |