Correlation Between Alnylam Pharmaceuticals, and BIONTECH

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

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

Diversification Opportunities for Alnylam Pharmaceuticals, and BIONTECH

0.27

Correlation Coefficient

Alnylam Pharmaceuticals,  BIONTECH

Modest diversification

The 3 months correlation between Alnylam and BIONTECH is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Alnylam Pharmaceuticals, and BIONTECH SE DRN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIONTECH SE DRN and Alnylam Pharmaceuticals, 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 Alnylam Pharmaceuticals, 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 DRN has no effect on the direction of Alnylam Pharmaceuticals, i.e., Alnylam Pharmaceuticals, and BIONTECH go up and down completely randomly.

Pair Corralation between Alnylam Pharmaceuticals, and BIONTECH

Assuming the 90 days trading horizon Alnylam Pharmaceuticals, is expected to generate 0.36 times more return on investment than BIONTECH. However, Alnylam Pharmaceuticals, is 2.8 times less risky than BIONTECH. It trades about 0.27 of its potential returns per unit of risk. BIONTECH SE DRN is currently generating about -0.03 per unit of risk. If you would invest  6,944  in Alnylam Pharmaceuticals, on April 24, 2025 and sell it today you would earn a total of  1,630  from holding Alnylam Pharmaceuticals, or generate 23.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Alnylam Pharmaceuticals,  vs.  BIONTECH SE DRN

Alnylam Pharmaceuticals,

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alnylam Pharmaceuticals, are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Alnylam Pharmaceuticals, sustained solid returns over the last few months and may actually be approaching a breakup point.

BIONTECH SE DRN

Risk-Adjusted Performance

Very Weak

Over the last 90 days BIONTECH SE DRN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BIONTECH is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Alnylam Pharmaceuticals, and BIONTECH

The main advantage of trading using opposite Alnylam Pharmaceuticals, and BIONTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alnylam Pharmaceuticals, 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 Alnylam Pharmaceuticals, and BIONTECH SE DRN 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.