Correlation Between BioNTech and Golden Matrix

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

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

Diversification Opportunities for BioNTech and Golden Matrix

-0.53

Correlation Coefficient

BioNTech  Golden Matrix

Excellent diversification

The 3 months correlation between BioNTech and Golden is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Golden Matrix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Matrix Group 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 Golden Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Matrix Group has no effect on the direction of BioNTech i.e., BioNTech and Golden Matrix go up and down completely randomly.

Pair Corralation between BioNTech and Golden Matrix

Given the investment horizon of 90 days BioNTech is expected to generate 2.2 times less return on investment than Golden Matrix. But when comparing it to its historical volatility, BioNTech SE is 2.08 times less risky than Golden Matrix. It trades about 0.02 of its potential returns per unit of risk. Golden Matrix Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  233.00  in Golden Matrix Group on September 30, 2024 and sell it today you would lose (29.00) from holding Golden Matrix Group or give up 12.45% of portfolio value over 90 days.

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

BioNTech SE  vs.  Golden Matrix Group

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 latest stock price disturbance, may contribute to short-term losses for the investors.

Golden Matrix Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Golden Matrix Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with BioNTech and Golden Matrix

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

The idea behind BioNTech SE and Golden Matrix Group 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.