Correlation Between SEI Investments and BioNTech
Can any of the company-specific risk be diversified away by investing in both SEI Investments 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 SEI Investments and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI Investments and BioNTech SE, you can compare the effects of market volatilities on SEI Investments 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 SEI Investments with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI Investments and BioNTech.
Diversification Opportunities for SEI Investments and BioNTech
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between SEI and BioNTech is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and SEI Investments 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 SEI Investments 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 SEI Investments i.e., SEI Investments and BioNTech go up and down completely randomly.
Pair Corralation between SEI Investments and BioNTech
Given the investment horizon of 90 days SEI Investments is expected to generate 0.36 times more return on investment than BioNTech. However, SEI Investments is 2.81 times less risky than BioNTech. It trades about 0.3 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.07 per unit of risk. If you would invest 7,581 in SEI Investments on August 29, 2024 and sell it today you would earn a total of 663.00 from holding SEI Investments or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI Investments vs. BioNTech SE
Performance |
| Timeline |
| SEI Investments |
| BioNTech SE |
SEI Investments and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI Investments and BioNTech
The main advantage of trading using opposite SEI Investments and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments 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.| SEI Investments vs. Aurora Innovation | SEI Investments vs. HUMANA INC | SEI Investments vs. Aquagold International | SEI Investments vs. Barloworld Ltd ADR |
| BioNTech vs. Eliem Therapeutics | BioNTech vs. Scpharmaceuticals | BioNTech vs. Milestone Pharmaceuticals | BioNTech vs. Seres Therapeutics |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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