Correlation Between Acco Brands and BioNTech
Can any of the company-specific risk be diversified away by investing in both Acco Brands 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 Acco Brands and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and BioNTech SE, you can compare the effects of market volatilities on Acco Brands 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 Acco Brands with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and BioNTech.
Diversification Opportunities for Acco Brands and BioNTech
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acco and BioNTech is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Acco Brands 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 Acco Brands 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 Acco Brands i.e., Acco Brands and BioNTech go up and down completely randomly.
Pair Corralation between Acco Brands and BioNTech
Given the investment horizon of 90 days Acco Brands is expected to generate 0.9 times more return on investment than BioNTech. However, Acco Brands is 1.11 times less risky than BioNTech. It trades about 0.07 of its potential returns per unit of risk. BioNTech SE is currently generating about 0.01 per unit of risk. If you would invest 531.00 in Acco Brands on September 18, 2024 and sell it today you would earn a total of 50.00 from holding Acco Brands or generate 9.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Acco Brands vs. BioNTech SE
Performance |
Timeline |
Acco Brands |
BioNTech SE |
Acco Brands and BioNTech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acco Brands and BioNTech
The main advantage of trading using opposite Acco Brands and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands 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.Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |