Correlation Between Moderna and BIONTECH
Can any of the company-specific risk be diversified away by investing in both Moderna 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 Moderna and BIONTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moderna and BIONTECH SE DRN, you can compare the effects of market volatilities on Moderna 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 Moderna with a short position of BIONTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderna and BIONTECH.
Diversification Opportunities for Moderna and BIONTECH
Excellent diversification
The 3 months correlation between Moderna and BIONTECH is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Moderna and BIONTECH SE DRN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIONTECH SE DRN and Moderna 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 Moderna 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 DRN has no effect on the direction of Moderna i.e., Moderna and BIONTECH go up and down completely randomly.
Pair Corralation between Moderna and BIONTECH
Assuming the 90 days trading horizon Moderna is expected to under-perform the BIONTECH. In addition to that, Moderna is 1.27 times more volatile than BIONTECH SE DRN. It trades about -0.06 of its total potential returns per unit of risk. BIONTECH SE DRN is currently generating about 0.0 per unit of volatility. If you would invest 5,390 in BIONTECH SE DRN on August 28, 2024 and sell it today you would lose (1,060) from holding BIONTECH SE DRN or give up 19.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Moderna vs. BIONTECH SE DRN
Performance |
| Timeline |
| Moderna |
| BIONTECH SE DRN |
Moderna and BIONTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moderna and BIONTECH
The main advantage of trading using opposite Moderna and BIONTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moderna 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.| Moderna vs. Fras le SA | Moderna vs. Clave Indices De | Moderna vs. BTG Pactual Logstica | Moderna vs. Telefonaktiebolaget LM Ericsson |
| BIONTECH vs. Fras le SA | BIONTECH vs. Clave Indices De | BIONTECH vs. BTG Pactual Logstica | BIONTECH vs. Telefonaktiebolaget LM Ericsson |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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