Correlation Between Marine Products and BioNTech
Can any of the company-specific risk be diversified away by investing in both Marine Products 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 Marine Products and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and BioNTech SE, you can compare the effects of market volatilities on Marine Products 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 Marine Products with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and BioNTech.
Diversification Opportunities for Marine Products and BioNTech
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Marine and BioNTech is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Marine Products 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 Marine Products 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 Marine Products i.e., Marine Products and BioNTech go up and down completely randomly.
Pair Corralation between Marine Products and BioNTech
Considering the 90-day investment horizon Marine Products is expected to generate 0.47 times more return on investment than BioNTech. However, Marine Products is 2.14 times less risky than BioNTech. It trades about 0.18 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.08 per unit of risk. If you would invest 928.00 in Marine Products on September 1, 2024 and sell it today you would earn a total of 61.00 from holding Marine Products or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. BioNTech SE
Performance |
| Timeline |
| Marine Products |
| BioNTech SE |
Marine Products and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and BioNTech
The main advantage of trading using opposite Marine Products and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products 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.| Marine Products vs. LCI Industries | Marine Products vs. MCBC Holdings | Marine Products vs. Winnebago Industries | Marine Products vs. Thor Industries |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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