Correlation Between BioNTech and FMC

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

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

Diversification Opportunities for BioNTech and FMC

0.75

Correlation Coefficient

BioNTech  FMC

Poor diversification

The 3 months correlation between BioNTech and FMC is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and FMC Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FMC Corporation 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 FMC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FMC Corporation has no effect on the direction of BioNTech i.e., BioNTech and FMC go up and down completely randomly.

Pair Corralation between BioNTech and FMC

Given the investment horizon of 90 days BioNTech SE is expected to generate 1.33 times more return on investment than FMC. However, BioNTech is 1.33 times more volatile than FMC Corporation. It trades about 0.05 of its potential returns per unit of risk. FMC Corporation is currently generating about 0.06 per unit of risk. If you would invest  10,110  in BioNTech SE on May 4, 2025 and sell it today you would earn a total of  624.00  from holding BioNTech SE or generate 6.17% return on investment over 90 days.

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

BioNTech SE  vs.  FMC Corp.

BioNTech SE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BioNTech SE are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, BioNTech may actually be approaching a critical reversion point that can send shares even higher in September 2025.

FMC Corporation

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in FMC Corporation are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, FMC may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with BioNTech and FMC

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

The idea behind BioNTech SE and FMC Corporation 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.