Correlation Between BioNTech and Virtus Investment

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

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

Diversification Opportunities for BioNTech and Virtus Investment

-0.15

Correlation Coefficient

BioNTech  Virtus Investment

Good diversification

The 3 months correlation between BioNTech and Virtus is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Virtus Investment Partners, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Investment 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 Virtus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Investment has no effect on the direction of BioNTech i.e., BioNTech and Virtus Investment go up and down completely randomly.

Pair Corralation between BioNTech and Virtus Investment

Given the investment horizon of 90 days BioNTech SE is expected to generate 1.39 times more return on investment than Virtus Investment. However, BioNTech is 1.39 times more volatile than Virtus Investment Partners,. It trades about 0.05 of its potential returns per unit of risk. Virtus Investment Partners, is currently generating about 0.0 per unit of risk. If you would invest  9,386  in BioNTech SE on October 7, 2024 and sell it today you would earn a total of  2,193  from holding BioNTech SE or generate 23.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BioNTech SE  vs.  Virtus Investment Partners,

BioNTech SE

Risk-Adjusted Performance

0 of 100

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 fairly strong basic indicators, BioNTech is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Virtus Investment

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Virtus Investment Partners, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Virtus Investment may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with BioNTech and Virtus Investment

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

The idea behind BioNTech SE and Virtus Investment Partners, 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.