Correlation Between Nationwide Building and BioNTech
Can any of the company-specific risk be diversified away by investing in both Nationwide Building 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 Nationwide Building and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide Building Society and BioNTech SE, you can compare the effects of market volatilities on Nationwide Building 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 Nationwide Building with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide Building and BioNTech.
Diversification Opportunities for Nationwide Building and BioNTech
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nationwide and BioNTech is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide Building Society and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Nationwide Building 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 Nationwide Building Society 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 Nationwide Building i.e., Nationwide Building and BioNTech go up and down completely randomly.
Pair Corralation between Nationwide Building and BioNTech
If you would invest 11,364 in BioNTech SE on August 31, 2024 and sell it today you would earn a total of 591.00 from holding BioNTech SE or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nationwide Building Society vs. BioNTech SE
Performance |
| Timeline |
| Nationwide Building |
| BioNTech SE |
Nationwide Building and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide Building and BioNTech
The main advantage of trading using opposite Nationwide Building and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide Building 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.| Nationwide Building vs. Atresmedia | Nationwide Building vs. Intermediate Capital Group | Nationwide Building vs. Grand Vision Media | Nationwide Building vs. Kaufman Et Broad |
| BioNTech vs. Ashtead Technology Holdings | BioNTech vs. Ecclesiastical Insurance Office | BioNTech vs. Pets at Home | BioNTech vs. Cairn Homes PLC |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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