Correlation Between International Precious and BioNTech

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

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

Diversification Opportunities for International Precious and BioNTech

-0.1

Correlation Coefficient

International Precious  BioNTech

Good diversification

The 3 months correlation between International and BioNTech is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding International Precious Mineral and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and International Precious 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 International Precious Minerals 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 International Precious i.e., International Precious and BioNTech go up and down completely randomly.

Pair Corralation between International Precious and BioNTech

If you would invest  8,495  in BioNTech SE on October 10, 2024 and sell it today you would earn a total of  4,193  from holding BioNTech SE or generate 49.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.8%
Values	Daily Returns

International Precious Mineral  vs.  BioNTech SE

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.

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.

Pair Trading with International Precious and BioNTech

The main advantage of trading using opposite International Precious and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Precious 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.

The idea behind International Precious Minerals and BioNTech SE 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .