Correlation Between CureVac NV and BioNTech

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

By analyzing existing cross correlation between CureVac NV and BioNTech SE, you can compare the effects of market volatilities on CureVac NV 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 CureVac NV with a short position of BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CureVac NV and BioNTech.

Diversification Opportunities for CureVac NV and BioNTech

0.8

Correlation Coefficient

CureVac NV  BioNTech

Very poor diversification

The 3 months correlation between CureVac and BioNTech is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and CureVac NV 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 CureVac NV 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 has no effect on the direction of CureVac NV i.e., CureVac NV and BioNTech go up and down completely randomly.

Pair Corralation between CureVac NV and BioNTech

Assuming the 90 days horizon CureVac NV is expected to generate 1.39 times more return on investment than BioNTech. However, CureVac NV is 1.39 times more volatile than BioNTech SE. It trades about -0.05 of its potential returns per unit of risk. BioNTech SE is currently generating about -0.12 per unit of risk. If you would invest  330.00  in CureVac NV on December 31, 2024 and sell it today you would lose (53.00) from holding CureVac NV or give up 16.06% of portfolio value over 90 days.

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

CureVac NV  vs.  BioNTech SE

CureVac NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days CureVac NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

BioNTech SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioNTech SE 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 May 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CureVac NV and BioNTech

The main advantage of trading using opposite CureVac NV and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CureVac NV 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.

The idea behind CureVac NV and BioNTech SE 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.