Correlation Between BioNTech and Fortress Transp

Can any of the company-specific risk be diversified away by investing in both BioNTech and Fortress Transp 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 BioNTech and Fortress Transp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BioNTech SE and Fortress Transp Infra, you can compare the effects of market volatilities on BioNTech and Fortress Transp 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 BioNTech with a short position of Fortress Transp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Fortress Transp.

Diversification Opportunities for BioNTech and Fortress Transp

0.27

Correlation Coefficient

BioNTech  Fortress Transp

Modest diversification

The 3 months correlation between BioNTech and Fortress is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Fortress Transp Infra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Transp Infra and BioNTech 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 BioNTech SE are associated (or correlated) with Fortress Transp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Transp Infra has no effect on the direction of BioNTech i.e., BioNTech and Fortress Transp go up and down completely randomly.

Pair Corralation between BioNTech and Fortress Transp

Given the investment horizon of 90 days BioNTech SE is expected to under-perform the Fortress Transp. But the stock apears to be less risky and, when comparing its historical volatility, BioNTech SE is 2.22 times less risky than Fortress Transp. The stock trades about -0.07 of its potential returns per unit of risk. The Fortress Transp Infra is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  12,613  in Fortress Transp Infra on December 30, 2024 and sell it today you would lose (1,377) from holding Fortress Transp Infra or give up 10.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

BioNTech SE  vs.  Fortress Transp Infra

BioNTech SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioNTech SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Fortress Transp Infra

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fortress Transp Infra has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Fortress Transp is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with BioNTech and Fortress Transp

The main advantage of trading using opposite BioNTech and Fortress Transp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Fortress Transp 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 Fortress Transp will offset losses from the drop in Fortress Transp's long position.

The idea behind BioNTech SE and Fortress Transp Infra pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Anywhere module to track or share privately all of your investments from the convenience of any device.