Correlation Between Southwest Airlines and BIONTECH
Can any of the company-specific risk be diversified away by investing in both Southwest Airlines 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 Southwest Airlines and BIONTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southwest Airlines Co and BIONTECH SE DRN, you can compare the effects of market volatilities on Southwest Airlines 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 Southwest Airlines with a short position of BIONTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southwest Airlines and BIONTECH.
Diversification Opportunities for Southwest Airlines and BIONTECH
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Southwest and BIONTECH is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Southwest Airlines Co and BIONTECH SE DRN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIONTECH SE DRN and Southwest Airlines 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 Southwest Airlines Co 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 DRN has no effect on the direction of Southwest Airlines i.e., Southwest Airlines and BIONTECH go up and down completely randomly.
Pair Corralation between Southwest Airlines and BIONTECH
If you would invest 4,030 in BIONTECH SE DRN on August 29, 2024 and sell it today you would earn a total of 270.00 from holding BIONTECH SE DRN or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Southwest Airlines Co vs. BIONTECH SE DRN
Performance |
| Timeline |
| Southwest Airlines |
| BIONTECH SE DRN |
Southwest Airlines and BIONTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southwest Airlines and BIONTECH
The main advantage of trading using opposite Southwest Airlines and BIONTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southwest Airlines 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.| Southwest Airlines vs. Delta Air Lines | Southwest Airlines vs. United Airlines Holdings | Southwest Airlines vs. American Airlines Group | Southwest Airlines vs. Gol Linhas Areas |
| BIONTECH vs. Southwest Airlines Co | BIONTECH vs. Micron Technology | BIONTECH vs. Charter Communications | BIONTECH vs. Verizon Communications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |