Correlation Between Bio Techne and Moderna

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

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

Diversification Opportunities for Bio Techne and Moderna

0.68

Correlation Coefficient

Bio Techne  Moderna

Poor diversification

The 3 months correlation between Bio and Moderna is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bio Techne and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna and Bio Techne 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 Bio Techne are associated (or correlated) with Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of Bio Techne i.e., Bio Techne and Moderna go up and down completely randomly.

Pair Corralation between Bio Techne and Moderna

Assuming the 90 days trading horizon Bio Techne is expected to generate 2.18 times less return on investment than Moderna. But when comparing it to its historical volatility, Bio Techne is 1.42 times less risky than Moderna. It trades about 0.06 of its potential returns per unit of risk. Moderna is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  739.00  in Moderna on April 22, 2025 and sell it today you would earn a total of  124.00  from holding Moderna or generate 16.78% return on investment over 90 days.

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

Bio Techne  vs.  Moderna

Bio Techne

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bio Techne are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Bio Techne may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Moderna

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Moderna are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Moderna sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bio Techne and Moderna

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

The idea behind Bio Techne and Moderna 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..