Correlation Between BioNTech and Micron Technology

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

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

Diversification Opportunities for BioNTech and Micron Technology

0.16

Correlation Coefficient

BioNTech  Micron Technology

Average diversification

The 3 months correlation between BioNTech and Micron is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Micron Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micron Technology and BioNTech 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 BioNTech SE are associated (or correlated) with Micron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micron Technology has no effect on the direction of BioNTech i.e., BioNTech and Micron Technology go up and down completely randomly.

Pair Corralation between BioNTech and Micron Technology

Assuming the 90 days trading horizon BioNTech is expected to generate 4.29 times less return on investment than Micron Technology. But when comparing it to its historical volatility, BioNTech SE is 1.17 times less risky than Micron Technology. It trades about 0.01 of its potential returns per unit of risk. Micron Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  6,270  in Micron Technology on April 24, 2025 and sell it today you would earn a total of  3,023  from holding Micron Technology or generate 48.21% return on investment over 90 days.

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

BioNTech SE  vs.  Micron Technology

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. In spite of rather sound basic indicators, BioNTech is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Micron Technology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Micron Technology are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Micron Technology unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioNTech and Micron Technology

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

The idea behind BioNTech SE and Micron Technology 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.