Correlation Between MOGU and BioNTech

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

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

Diversification Opportunities for MOGU and BioNTech

0.53

Correlation Coefficient

MOGU  BioNTech

Very weak diversification

The 3 months correlation between MOGU and BioNTech is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding MOGU Inc and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and MOGU 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 MOGU Inc 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 MOGU i.e., MOGU and BioNTech go up and down completely randomly.

Pair Corralation between MOGU and BioNTech

Given the investment horizon of 90 days MOGU Inc is expected to generate 1.25 times more return on investment than BioNTech. However, MOGU is 1.25 times more volatile than BioNTech SE. It trades about -0.03 of its potential returns per unit of risk. BioNTech SE is currently generating about -0.05 per unit of risk. If you would invest  236.00  in MOGU Inc on December 19, 2024 and sell it today you would lose (27.00) from holding MOGU Inc or give up 11.44% of portfolio value over 90 days.

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

MOGU Inc  vs.  BioNTech SE

MOGU Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days MOGU Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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 latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with MOGU and BioNTech

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

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.