Correlation Between Analog Devices and CureVac NV
Can any of the company-specific risk be diversified away by investing in both Analog Devices 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 Analog Devices and CureVac NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Analog Devices and CureVac NV, you can compare the effects of market volatilities on Analog Devices 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 Analog Devices with a short position of CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Devices and CureVac NV.
Diversification Opportunities for Analog Devices and CureVac NV
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Analog and CureVac is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Analog Devices and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV and Analog Devices 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 Analog Devices 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 Analog Devices i.e., Analog Devices and CureVac NV go up and down completely randomly.
Pair Corralation between Analog Devices and CureVac NV
Considering the 90-day investment horizon Analog Devices is expected to under-perform the CureVac NV. But the stock apears to be less risky and, when comparing its historical volatility, Analog Devices is 3.35 times less risky than CureVac NV. The stock trades about 0.0 of its potential returns per unit of risk. The CureVac NV is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 287.00 in CureVac NV on October 30, 2024 and sell it today you would earn a total of 91.00 from holding CureVac NV or generate 31.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Analog Devices vs. CureVac NV
Performance |
| Timeline |
| Analog Devices |
| CureVac NV |
Analog Devices and CureVac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analog Devices and CureVac NV
The main advantage of trading using opposite Analog Devices and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analog Devices 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.| Analog Devices vs. NXP Semiconductors NV | Analog Devices vs. Qualcomm Incorporated | Analog Devices vs. Broadcom | Analog Devices vs. Microchip Technology |
| CureVac NV vs. Cimpress NV | CureVac NV vs. Arq Inc | CureVac NV vs. Park Electrochemical | CureVac NV vs. The Mosaic |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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