Correlation Between Zegona Communications and BioNTech
Can any of the company-specific risk be diversified away by investing in both Zegona Communications 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 Zegona Communications and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zegona Communications Plc and BioNTech SE, you can compare the effects of market volatilities on Zegona Communications 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 Zegona Communications with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zegona Communications and BioNTech.
Diversification Opportunities for Zegona Communications and BioNTech
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zegona and BioNTech is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Zegona Communications Plc and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Zegona Communications 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 Zegona Communications Plc 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 Zegona Communications i.e., Zegona Communications and BioNTech go up and down completely randomly.
Pair Corralation between Zegona Communications and BioNTech
Assuming the 90 days trading horizon Zegona Communications is expected to generate 1.7 times less return on investment than BioNTech. But when comparing it to its historical volatility, Zegona Communications Plc is 1.11 times less risky than BioNTech. It trades about 0.06 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,885 in BioNTech SE on September 15, 2024 and sell it today you would earn a total of 3,125 from holding BioNTech SE or generate 35.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
Zegona Communications Plc vs. BioNTech SE
Performance |
| Timeline |
| Zegona Communications Plc |
| BioNTech SE |
Zegona Communications and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zegona Communications and BioNTech
The main advantage of trading using opposite Zegona Communications and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zegona Communications 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.| Zegona Communications vs. SM Energy Co | Zegona Communications vs. FuelCell Energy | Zegona Communications vs. Grand Vision Media | Zegona Communications vs. DG Innovate PLC |
| BioNTech vs. Arrow Electronics | BioNTech vs. Europa Metals | BioNTech vs. Zegona Communications Plc | BioNTech vs. Eastman Chemical Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |