Correlation Between BioNTech and Webull Incentive
Can any of the company-specific risk be diversified away by investing in both BioNTech and Webull Incentive 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 Webull Incentive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Webull Incentive, you can compare the effects of market volatilities on BioNTech and Webull Incentive 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 Webull Incentive. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Webull Incentive.
Diversification Opportunities for BioNTech and Webull Incentive
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BioNTech and Webull is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Webull Incentive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webull Incentive 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 Webull Incentive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webull Incentive has no effect on the direction of BioNTech i.e., BioNTech and Webull Incentive go up and down completely randomly.
Pair Corralation between BioNTech and Webull Incentive
Given the investment horizon of 90 days BioNTech SE is expected to under-perform the Webull Incentive. But the stock apears to be less risky and, when comparing its historical volatility, BioNTech SE is 9.63 times less risky than Webull Incentive. The stock trades about 0.0 of its potential returns per unit of risk. The Webull Incentive is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 279.00 in Webull Incentive on April 23, 2025 and sell it today you would lose (92.00) from holding Webull Incentive or give up 32.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.69% |
| Values | Daily Returns |
BioNTech SE vs. Webull Incentive
Performance |
| Timeline |
| BioNTech SE |
| Webull Incentive |
Risk-Adjusted Performance
OK
Weak | Strong |
BioNTech and Webull Incentive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Webull Incentive
The main advantage of trading using opposite BioNTech and Webull Incentive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Webull Incentive 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 Webull Incentive will offset losses from the drop in Webull Incentive's long position.The idea behind BioNTech SE and Webull Incentive 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.| Webull Incentive vs. NextNav Warrant | Webull Incentive vs. Titan Machinery | Webull Incentive vs. Coupang LLC | Webull Incentive vs. JetAI Inc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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