Correlation Between BioNTech and Westinghouse Air
Can any of the company-specific risk be diversified away by investing in both BioNTech and Westinghouse Air 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 Westinghouse Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Westinghouse Air Brake, you can compare the effects of market volatilities on BioNTech and Westinghouse Air 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 Westinghouse Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Westinghouse Air.
Diversification Opportunities for BioNTech and Westinghouse Air
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioNTech and Westinghouse is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Westinghouse Air Brake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westinghouse Air Brake 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 Westinghouse Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westinghouse Air Brake has no effect on the direction of BioNTech i.e., BioNTech and Westinghouse Air go up and down completely randomly.
Pair Corralation between BioNTech and Westinghouse Air
Given the investment horizon of 90 days BioNTech is expected to generate 1.45 times less return on investment than Westinghouse Air. In addition to that, BioNTech is 2.04 times more volatile than Westinghouse Air Brake. It trades about 0.05 of its total potential returns per unit of risk. Westinghouse Air Brake is currently generating about 0.15 per unit of volatility. If you would invest 13,722 in Westinghouse Air Brake on August 25, 2024 and sell it today you would earn a total of 6,193 from holding Westinghouse Air Brake or generate 45.13% 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. Westinghouse Air Brake
Performance |
| Timeline |
| BioNTech SE |
| Westinghouse Air Brake |
BioNTech and Westinghouse Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Westinghouse Air
The main advantage of trading using opposite BioNTech and Westinghouse Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Westinghouse Air 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 Westinghouse Air will offset losses from the drop in Westinghouse Air's long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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