Correlation Between Mativ Holdings and BioNTech
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings 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 Mativ Holdings and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and BioNTech SE, you can compare the effects of market volatilities on Mativ Holdings 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 Mativ Holdings with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and BioNTech.
Diversification Opportunities for Mativ Holdings and BioNTech
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mativ and BioNTech is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Mativ Holdings 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 Mativ Holdings 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 Mativ Holdings i.e., Mativ Holdings and BioNTech go up and down completely randomly.
Pair Corralation between Mativ Holdings and BioNTech
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the BioNTech. In addition to that, Mativ Holdings is 1.39 times more volatile than BioNTech SE. It trades about -0.31 of its total potential returns per unit of risk. BioNTech SE is currently generating about -0.05 per unit of volatility. If you would invest 11,975 in BioNTech SE on November 28, 2024 and sell it today you would lose (575.00) from holding BioNTech SE or give up 4.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. BioNTech SE
Performance |
| Timeline |
| Mativ Holdings |
| BioNTech SE |
Mativ Holdings and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and BioNTech
The main advantage of trading using opposite Mativ Holdings and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings 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.| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel Corp |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |