Correlation Between BioNTech and Intellia Therapeutics

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

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

Diversification Opportunities for BioNTech and Intellia Therapeutics

0.63

Correlation Coefficient

BioNTech  Intellia Therapeutics

Poor diversification

The 3 months correlation between BioNTech and Intellia is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Intellia Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellia Therapeutics 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 Intellia Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellia Therapeutics has no effect on the direction of BioNTech i.e., BioNTech and Intellia Therapeutics go up and down completely randomly.

Pair Corralation between BioNTech and Intellia Therapeutics

Given the investment horizon of 90 days BioNTech is expected to generate 4.77 times less return on investment than Intellia Therapeutics. But when comparing it to its historical volatility, BioNTech SE is 1.89 times less risky than Intellia Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Intellia Therapeutics is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  844.00  in Intellia Therapeutics on May 5, 2025 and sell it today you would earn a total of  305.00  from holding Intellia Therapeutics or generate 36.14% 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.  Intellia Therapeutics

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.

Intellia Therapeutics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intellia Therapeutics are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain essential indicators, Intellia Therapeutics sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioNTech and Intellia Therapeutics

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

The idea behind BioNTech SE and Intellia Therapeutics 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.

Check out your portfolio center.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.