Correlation Between WUXI BIOLOGICS and CureVac NV
Can any of the company-specific risk be diversified away by investing in both WUXI BIOLOGICS and CureVac NV 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 WUXI BIOLOGICS and CureVac NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WUXI BIOLOGICS UNSPADR2 and CureVac NV, you can compare the effects of market volatilities on WUXI BIOLOGICS and CureVac NV 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 WUXI BIOLOGICS with a short position of CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of WUXI BIOLOGICS and CureVac NV.
Diversification Opportunities for WUXI BIOLOGICS and CureVac NV
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WUXI and CureVac is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding WUXI BIOLOGICS UNSPADR2 and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and WUXI BIOLOGICS 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 WUXI BIOLOGICS UNSPADR2 are associated (or correlated) with CureVac NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CureVac NV has no effect on the direction of WUXI BIOLOGICS i.e., WUXI BIOLOGICS and CureVac NV go up and down completely randomly.
Pair Corralation between WUXI BIOLOGICS and CureVac NV
Assuming the 90 days trading horizon WUXI BIOLOGICS UNSPADR2 is expected to under-perform the CureVac NV. In addition to that, WUXI BIOLOGICS is 1.18 times more volatile than CureVac NV. It trades about -0.05 of its total potential returns per unit of risk. CureVac NV is currently generating about -0.04 per unit of volatility. If you would invest 490.00 in CureVac NV on August 25, 2024 and sell it today you would lose (241.00) from holding CureVac NV or give up 49.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WUXI BIOLOGICS UNSPADR2 vs. CureVac NV
Performance |
| Timeline |
| WUXI BIOLOGICS UNSPADR2 |
| CureVac NV |
WUXI BIOLOGICS and CureVac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WUXI BIOLOGICS and CureVac NV
The main advantage of trading using opposite WUXI BIOLOGICS and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WUXI BIOLOGICS position performs unexpectedly, CureVac NV 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 CureVac NV will offset losses from the drop in CureVac NV's long position.| WUXI BIOLOGICS vs. TYSON FOODS A | WUXI BIOLOGICS vs. United Natural Foods | WUXI BIOLOGICS vs. UNIVERSAL MUSIC GROUP | WUXI BIOLOGICS vs. SENECA FOODS A |
| CureVac NV vs. CSL Limited | CureVac NV vs. Superior Plus Corp | CureVac NV vs. NMI Holdings | CureVac NV vs. Origin Agritech |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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