Correlation Between Moderna and CSL

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

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

Diversification Opportunities for Moderna and CSL

0.0

Correlation Coefficient

Moderna  CSL

Pay attention - limited upside

The 3 months correlation between Moderna and CSL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Moderna and CSL LTD SPONADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL LTD SPONADR 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL LTD SPONADR has no effect on the direction of Moderna i.e., Moderna and CSL go up and down completely randomly.

Pair Corralation between Moderna and CSL

If you would invest  6,500  in CSL LTD SPONADR on April 21, 2025 and sell it today you would earn a total of  550.00  from holding CSL LTD SPONADR or generate 8.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Moderna  vs.  CSL LTD SPONADR

Moderna

Risk-Adjusted Performance

OK

Over the last 90 days Moderna has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Moderna is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

CSL LTD SPONADR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CSL LTD SPONADR are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward-looking indicators, CSL may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Moderna and CSL

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

The idea behind Moderna and CSL LTD SPONADR 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.