Correlation Between Grocery Outlet and BioNTech
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet 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 Grocery Outlet and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grocery Outlet Holding and BioNTech SE, you can compare the effects of market volatilities on Grocery Outlet 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 Grocery Outlet with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and BioNTech.
Diversification Opportunities for Grocery Outlet and BioNTech
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grocery and BioNTech is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and Grocery Outlet 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 Grocery Outlet Holding 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 Grocery Outlet i.e., Grocery Outlet and BioNTech go up and down completely randomly.
Pair Corralation between Grocery Outlet and BioNTech
Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to under-perform the BioNTech. In addition to that, Grocery Outlet is 3.9 times more volatile than BioNTech SE. It trades about -0.16 of its total potential returns per unit of risk. BioNTech SE is currently generating about 0.24 per unit of volatility. If you would invest 8,640 in BioNTech SE on February 17, 2024 and sell it today you would earn a total of 570.00 from holding BioNTech SE or generate 6.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Grocery Outlet Holding vs. BioNTech SE
Performance |
Timeline |
Grocery Outlet Holding |
BioNTech SE |
Grocery Outlet and BioNTech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grocery Outlet and BioNTech
The main advantage of trading using opposite Grocery Outlet and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet 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.Grocery Outlet vs. Natural Grocers by | Grocery Outlet vs. Village Super Market | Grocery Outlet vs. Ingles Markets Incorporated | Grocery Outlet vs. Ocado Group plc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Stocks Directory Find actively traded stocks across global markets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |