Correlation Between Moderna and DANIMER SCIENTIFIC

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

By analyzing existing cross correlation between Moderna and DANIMER SCIENTIFIC, you can compare the effects of market volatilities on Moderna and DANIMER SCIENTIFIC 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 DANIMER SCIENTIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderna and DANIMER SCIENTIFIC.

Diversification Opportunities for Moderna and DANIMER SCIENTIFIC

0.91

Correlation Coefficient

Moderna  DANIMER SCIENTIFIC

Almost no diversification

The 3 months correlation between Moderna and DANIMER is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Moderna and DANIMER SCIENTIFIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DANIMER SCIENTIFIC 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 DANIMER SCIENTIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DANIMER SCIENTIFIC has no effect on the direction of Moderna i.e., Moderna and DANIMER SCIENTIFIC go up and down completely randomly.

Pair Corralation between Moderna and DANIMER SCIENTIFIC

If you would invest  4,091  in Moderna on October 12, 2024 and sell it today you would earn a total of  17.00  from holding Moderna or generate 0.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	94.44%
Values	Daily Returns

Moderna  vs.  DANIMER SCIENTIFIC

Moderna

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Moderna has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

DANIMER SCIENTIFIC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DANIMER SCIENTIFIC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Moderna and DANIMER SCIENTIFIC

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

The idea behind Moderna and DANIMER SCIENTIFIC 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.