Correlation Between BIONTECH and Moderna
Can any of the company-specific risk be diversified away by investing in both BIONTECH and Moderna 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 Moderna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIONTECH SE DRN and Moderna, you can compare the effects of market volatilities on BIONTECH and Moderna 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 Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIONTECH and Moderna.
Diversification Opportunities for BIONTECH and Moderna
Excellent diversification
The 3 months correlation between BIONTECH and Moderna is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding BIONTECH SE DRN and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna 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 DRN are associated (or correlated) with Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of BIONTECH i.e., BIONTECH and Moderna go up and down completely randomly.
Pair Corralation between BIONTECH and Moderna
Assuming the 90 days trading horizon BIONTECH SE DRN is expected to generate 0.74 times more return on investment than Moderna. However, BIONTECH SE DRN is 1.35 times less risky than Moderna. It trades about 0.04 of its potential returns per unit of risk. Moderna is currently generating about -0.05 per unit of risk. If you would invest 3,312 in BIONTECH SE DRN on August 28, 2024 and sell it today you would earn a total of 1,018 from holding BIONTECH SE DRN or generate 30.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
BIONTECH SE DRN vs. Moderna
Performance |
| Timeline |
| BIONTECH SE DRN |
| Moderna |
BIONTECH and Moderna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIONTECH and Moderna
The main advantage of trading using opposite BIONTECH and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIONTECH position performs unexpectedly, Moderna 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 Moderna will offset losses from the drop in Moderna's long position.| BIONTECH vs. Fras le SA | BIONTECH vs. Clave Indices De | BIONTECH vs. BTG Pactual Logstica | BIONTECH vs. Telefonaktiebolaget LM Ericsson |
| Moderna vs. Charter Communications | Moderna vs. Take Two Interactive Software | Moderna vs. UnitedHealth Group Incorporated | Moderna vs. The Trade Desk |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |