Correlation Between BioNTech and Knife River
Can any of the company-specific risk be diversified away by investing in both BioNTech and Knife River 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 Knife River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Knife River, you can compare the effects of market volatilities on BioNTech and Knife River 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 Knife River. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Knife River.
Diversification Opportunities for BioNTech and Knife River
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between BioNTech and Knife is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Knife River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knife River 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 Knife River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knife River has no effect on the direction of BioNTech i.e., BioNTech and Knife River go up and down completely randomly.
Pair Corralation between BioNTech and Knife River
Given the investment horizon of 90 days BioNTech is expected to generate 98.19 times less return on investment than Knife River. In addition to that, BioNTech is 1.09 times more volatile than Knife River. It trades about 0.0 of its total potential returns per unit of risk. Knife River is currently generating about 0.11 per unit of volatility. If you would invest 8,899 in Knife River on September 25, 2024 and sell it today you would earn a total of 1,364 from holding Knife River or generate 15.33% 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. Knife River
Performance |
Timeline |
BioNTech SE |
Knife River |
BioNTech and Knife River Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BioNTech and Knife River
The main advantage of trading using opposite BioNTech and Knife River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Knife River 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 Knife River will offset losses from the drop in Knife River's long position.BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
Knife River vs. BioNTech SE | Knife River vs. Afya | Knife River vs. Asure Software | Knife River vs. 51Talk Online Education |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |