Correlation Between GE Vernova and BioNTech
Can any of the company-specific risk be diversified away by investing in both GE Vernova 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 GE Vernova and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Vernova LLC and BioNTech SE, you can compare the effects of market volatilities on GE Vernova 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 GE Vernova with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and BioNTech.
Diversification Opportunities for GE Vernova and BioNTech
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GEV and BioNTech is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and GE Vernova 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 GE Vernova LLC 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 GE Vernova i.e., GE Vernova and BioNTech go up and down completely randomly.
Pair Corralation between GE Vernova and BioNTech
Considering the 90-day investment horizon GE Vernova LLC is expected to generate 1.78 times more return on investment than BioNTech. However, GE Vernova is 1.78 times more volatile than BioNTech SE. It trades about 0.07 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.11 per unit of risk. If you would invest 35,403 in GE Vernova LLC on November 4, 2024 and sell it today you would earn a total of 1,885 from holding GE Vernova LLC or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Vernova LLC vs. BioNTech SE
Performance |
| Timeline |
| GE Vernova LLC |
| BioNTech SE |
GE Vernova and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and BioNTech
The main advantage of trading using opposite GE Vernova and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova 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.| GE Vernova vs. Franklin Street Properties | GE Vernova vs. Taylor Morn Home | GE Vernova vs. Mid Atlantic Home Health | GE Vernova vs. Custom Truck One |
| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |