Correlation Between SBA Communications and BioNTech

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

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

Diversification Opportunities for SBA Communications and BioNTech

-0.38

Correlation Coefficient

SBA Communications  BioNTech

Very good diversification

The 3 months correlation between SBA and BioNTech is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SBA Communications Corp and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and SBA Communications 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 SBA Communications Corp 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 SBA Communications i.e., SBA Communications and BioNTech go up and down completely randomly.

Pair Corralation between SBA Communications and BioNTech

Assuming the 90 days trading horizon SBA Communications Corp is expected to generate 0.52 times more return on investment than BioNTech. However, SBA Communications Corp is 1.93 times less risky than BioNTech. It trades about -0.02 of its potential returns per unit of risk. BioNTech SE is currently generating about -0.02 per unit of risk. If you would invest  20,491  in SBA Communications Corp on April 23, 2025 and sell it today you would lose (511.00) from holding SBA Communications Corp or give up 2.49% of portfolio value over 90 days.

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

SBA Communications Corp  vs.  BioNTech SE

SBA Communications Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days SBA Communications Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SBA Communications is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

BioNTech SE

Risk-Adjusted Performance

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.

Pair Trading with SBA Communications and BioNTech

The main advantage of trading using opposite SBA Communications and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBA Communications 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 SBA Communications Corp 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.