Correlation Between BioNTech and International Precious

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

By analyzing existing cross correlation between BioNTech SE and International Precious Minerals, you can compare the effects of market volatilities on BioNTech and International Precious 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 International Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and International Precious.

Diversification Opportunities for BioNTech and International Precious

-0.1

Correlation Coefficient

BioNTech  International Precious

Good diversification

The 3 months correlation between BioNTech and International is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and International Precious Mineral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Precious 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 International Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Precious has no effect on the direction of BioNTech i.e., BioNTech and International Precious go up and down completely randomly.

Pair Corralation between BioNTech and International Precious

If you would invest  13,994  in BioNTech SE on October 10, 2024 and sell it today you would lose (1,306) from holding BioNTech SE or give up 9.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.44%
Values	Daily Returns

BioNTech SE  vs.  International Precious Mineral

BioNTech SE

Risk-Adjusted Performance

4 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, BioNTech may actually be approaching a critical reversion point that can send shares even higher in February 2025.

International Precious

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days International Precious Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, International Precious is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BioNTech and International Precious

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

The idea behind BioNTech SE and International Precious Minerals 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.