Correlation Between BioNTech and Universal Electronics

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

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

Diversification Opportunities for BioNTech and Universal Electronics

-0.19

Correlation Coefficient

BioNTech  Universal Electronics

Good diversification

The 3 months correlation between BioNTech and Universal is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Universal Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Electronics 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 Universal Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Electronics has no effect on the direction of BioNTech i.e., BioNTech and Universal Electronics go up and down completely randomly.

Pair Corralation between BioNTech and Universal Electronics

Assuming the 90 days trading horizon BioNTech SE is expected to under-perform the Universal Electronics. But the stock apears to be less risky and, when comparing its historical volatility, BioNTech SE is 1.37 times less risky than Universal Electronics. The stock trades about -0.01 of its potential returns per unit of risk. The Universal Electronics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  408.00  in Universal Electronics on April 24, 2025 and sell it today you would earn a total of  142.00  from holding Universal Electronics or generate 34.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

BioNTech SE  vs.  Universal Electronics

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.

Universal Electronics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Universal Electronics are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Universal Electronics reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioNTech and Universal Electronics

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

The idea behind BioNTech SE and Universal Electronics 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.