Correlation Between Moderna and EXPRES2ION BIOTECH

Can any of the company-specific risk be diversified away by investing in both Moderna and EXPRES2ION BIOTECH 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 EXPRES2ION BIOTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Moderna and EXPRES2ION BIOTECH HLDG, you can compare the effects of market volatilities on Moderna and EXPRES2ION BIOTECH 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 EXPRES2ION BIOTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderna and EXPRES2ION BIOTECH.

Diversification Opportunities for Moderna and EXPRES2ION BIOTECH

0.66

Correlation Coefficient

Moderna  EXPRES2ION BIOTECH

Poor diversification

The 3 months correlation between Moderna and EXPRES2ION is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Moderna and EXPRES2ION BIOTECH HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXPRES2ION BIOTECH HLDG 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 EXPRES2ION BIOTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXPRES2ION BIOTECH HLDG has no effect on the direction of Moderna i.e., Moderna and EXPRES2ION BIOTECH go up and down completely randomly.

Pair Corralation between Moderna and EXPRES2ION BIOTECH

Assuming the 90 days horizon Moderna is expected to under-perform the EXPRES2ION BIOTECH. But the stock apears to be less risky and, when comparing its historical volatility, Moderna is 4.02 times less risky than EXPRES2ION BIOTECH. The stock trades about -0.21 of its potential returns per unit of risk. The EXPRES2ION BIOTECH HLDG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  260.00  in EXPRES2ION BIOTECH HLDG on September 22, 2024 and sell it today you would lose (77.00) from holding EXPRES2ION BIOTECH HLDG or give up 29.62% of portfolio value over 90 days.

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

Moderna  vs.  EXPRES2ION BIOTECH HLDG

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 January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

EXPRES2ION BIOTECH HLDG

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in EXPRES2ION BIOTECH HLDG are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, EXPRES2ION BIOTECH may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Moderna and EXPRES2ION BIOTECH

The main advantage of trading using opposite Moderna and EXPRES2ION BIOTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moderna position performs unexpectedly, EXPRES2ION BIOTECH 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 EXPRES2ION BIOTECH will offset losses from the drop in EXPRES2ION BIOTECH's long position.

The idea behind Moderna and EXPRES2ION BIOTECH HLDG 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.

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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.