Correlation Between BioNTech and Sonida Senior
Can any of the company-specific risk be diversified away by investing in both BioNTech and Sonida Senior 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 Sonida Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Sonida Senior Living, you can compare the effects of market volatilities on BioNTech and Sonida Senior 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 Sonida Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Sonida Senior.
Diversification Opportunities for BioNTech and Sonida Senior
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioNTech and Sonida is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Sonida Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonida Senior Living 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 Sonida Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonida Senior Living has no effect on the direction of BioNTech i.e., BioNTech and Sonida Senior go up and down completely randomly.
Pair Corralation between BioNTech and Sonida Senior
Given the investment horizon of 90 days BioNTech SE is expected to generate 0.88 times more return on investment than Sonida Senior. However, BioNTech SE is 1.13 times less risky than Sonida Senior. It trades about -0.02 of its potential returns per unit of risk. Sonida Senior Living is currently generating about -0.04 per unit of risk. If you would invest 11,098 in BioNTech SE on August 24, 2024 and sell it today you would lose (275.00) from holding BioNTech SE or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Sonida Senior Living
Performance |
| Timeline |
| BioNTech SE |
| Sonida Senior Living |
BioNTech and Sonida Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Sonida Senior
The main advantage of trading using opposite BioNTech and Sonida Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Sonida Senior 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 Sonida Senior will offset losses from the drop in Sonida Senior's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. InnovAge Holding Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |