Correlation Between Nel ASA and BioNTech
Can any of the company-specific risk be diversified away by investing in both Nel ASA and BioNTech 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 Nel ASA and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nel ASA and BioNTech SE, you can compare the effects of market volatilities on Nel ASA and BioNTech 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 Nel ASA with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nel ASA and BioNTech.
Diversification Opportunities for Nel ASA and BioNTech
Very good diversification
The 3 months correlation between Nel and BioNTech is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nel ASA and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Nel ASA 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 Nel ASA are associated (or correlated) with BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of Nel ASA i.e., Nel ASA and BioNTech go up and down completely randomly.
Pair Corralation between Nel ASA and BioNTech
Assuming the 90 days horizon Nel ASA is expected to under-perform the BioNTech. In addition to that, Nel ASA is 1.39 times more volatile than BioNTech SE. It trades about -0.07 of its total potential returns per unit of risk. BioNTech SE is currently generating about 0.03 per unit of volatility. If you would invest 9,966 in BioNTech SE on August 29, 2024 and sell it today you would earn a total of 1,414 from holding BioNTech SE or generate 14.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nel ASA vs. BioNTech SE
Performance |
| Timeline |
| Nel ASA |
| BioNTech SE |
Nel ASA and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nel ASA and BioNTech
The main advantage of trading using opposite Nel ASA and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nel ASA position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech's long position.| Nel ASA vs. Superior Plus Corp | Nel ASA vs. NMI Holdings | Nel ASA vs. Origin Agritech | Nel ASA vs. SIVERS SEMICONDUCTORS AB |
| BioNTech vs. Superior Plus Corp | BioNTech vs. NMI Holdings | BioNTech vs. Origin Agritech | BioNTech vs. SIVERS SEMICONDUCTORS AB |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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