Correlation Between BioNTech and Regeneron Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both BioNTech and Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Regeneron Pharmaceuticals, you can compare the effects of market volatilities on BioNTech and Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Regeneron Pharmaceuticals.
Diversification Opportunities for BioNTech and Regeneron Pharmaceuticals
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BioNTech and Regeneron is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Regeneron Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regeneron Pharmaceuticals has no effect on the direction of BioNTech i.e., BioNTech and Regeneron Pharmaceuticals go up and down completely randomly.
Pair Corralation between BioNTech and Regeneron Pharmaceuticals
Given the investment horizon of 90 days BioNTech SE is expected to under-perform the Regeneron Pharmaceuticals. In addition to that, BioNTech is 1.75 times more volatile than Regeneron Pharmaceuticals. It trades about -0.07 of its total potential returns per unit of risk. Regeneron Pharmaceuticals is currently generating about -0.06 per unit of volatility. If you would invest 94,005 in Regeneron Pharmaceuticals on January 26, 2024 and sell it today you would lose (3,351) from holding Regeneron Pharmaceuticals or give up 3.56% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BioNTech SE vs. Regeneron Pharmaceuticals
Performance |
Timeline |
BioNTech SE |
Regeneron Pharmaceuticals |
BioNTech and Regeneron Pharmaceuticals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BioNTech and Regeneron Pharmaceuticals
The main advantage of trading using opposite BioNTech and Regeneron Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Regeneron Pharmaceuticals 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 Regeneron Pharmaceuticals will offset losses from the drop in Regeneron Pharmaceuticals' long position.BioNTech vs. Terns Pharmaceuticals | BioNTech vs. Amylyx Pharmaceuticals | BioNTech vs. Acumen Pharmaceuticals | BioNTech vs. Inozyme PharmaInc |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |