Correlation Between BioNTech and RETAIL FOOD

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

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

Diversification Opportunities for BioNTech and RETAIL FOOD

-0.31

Correlation Coefficient

BioNTech  RETAIL FOOD

Very good diversification

The 3 months correlation between BioNTech and RETAIL is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and RETAIL FOOD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RETAIL FOOD 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 RETAIL FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RETAIL FOOD GROUP has no effect on the direction of BioNTech i.e., BioNTech and RETAIL FOOD go up and down completely randomly.

Pair Corralation between BioNTech and RETAIL FOOD

Assuming the 90 days trading horizon BioNTech SE is expected to generate 0.97 times more return on investment than RETAIL FOOD. However, BioNTech SE is 1.03 times less risky than RETAIL FOOD. It trades about 0.01 of its potential returns per unit of risk. RETAIL FOOD GROUP is currently generating about 0.0 per unit of risk. If you would invest  9,558  in BioNTech SE on April 6, 2025 and sell it today you would lose (38.00) from holding BioNTech SE or give up 0.4% of portfolio value over 90 days.

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

BioNTech SE  vs.  RETAIL FOOD GROUP

BioNTech SE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, BioNTech exhibited solid returns over the last few months and may actually be approaching a breakup point.

RETAIL FOOD GROUP

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in RETAIL FOOD GROUP are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, RETAIL FOOD exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioNTech and RETAIL FOOD

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

The idea behind BioNTech SE and RETAIL FOOD 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.