Correlation Between CureVac NV and Annovis Bio
Can any of the company-specific risk be diversified away by investing in both CureVac NV and Annovis Bio 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 CureVac NV and Annovis Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CureVac NV and Annovis Bio, you can compare the effects of market volatilities on CureVac NV and Annovis Bio 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 CureVac NV with a short position of Annovis Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of CureVac NV and Annovis Bio.
Diversification Opportunities for CureVac NV and Annovis Bio
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CureVac and Annovis is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding CureVac NV and Annovis Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annovis Bio and CureVac NV 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 CureVac NV are associated (or correlated) with Annovis Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annovis Bio has no effect on the direction of CureVac NV i.e., CureVac NV and Annovis Bio go up and down completely randomly.
Pair Corralation between CureVac NV and Annovis Bio
Given the investment horizon of 90 days CureVac NV is expected to under-perform the Annovis Bio. But the stock apears to be less risky and, when comparing its historical volatility, CureVac NV is 1.76 times less risky than Annovis Bio. The stock trades about -0.02 of its potential returns per unit of risk. The Annovis Bio is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,157 in Annovis Bio on August 30, 2024 and sell it today you would lose (503.00) from holding Annovis Bio or give up 43.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CureVac NV vs. Annovis Bio
Performance |
| Timeline |
| CureVac NV |
| Annovis Bio |
CureVac NV and Annovis Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CureVac NV and Annovis Bio
The main advantage of trading using opposite CureVac NV and Annovis Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CureVac NV position performs unexpectedly, Annovis Bio 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 Annovis Bio will offset losses from the drop in Annovis Bio's long position.| CureVac NV vs. Celsius Holdings | CureVac NV vs. Nascent Wine | CureVac NV vs. Naked Wines plc | CureVac NV vs. SNDL Inc |
| Annovis Bio vs. Bright Minds Biosciences | Annovis Bio vs. HP Inc | Annovis Bio vs. Intel | Annovis Bio vs. Chevron Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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